Brook Company purchased 70 Meissner Company 12%, 10-year, 1,000 bonds on January 1, 2014, for 70,000. The
Question:
Brook Company purchased 70 Meissner Company 12%, 10-year, €1,000 bonds on January 1, 2014, for €70,000. The bonds pay interest semiannually on July 1 and January 1. On January 1, 2015, after receipt of interest, Brook Company sold 40 of the bonds for €40,100.
Instructions
Prepare the journal entries to record the transactions described above.
Step by Step Answer:
January 1 2014 Debt Investments 70000 Cash 70000 July 1 2014 Cash 70000 X 12 X 612 4200 ...View the full answer
Financial Accounting IFRS
ISBN: 978-1118285909
2nd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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