6. On January 1, 2014, Brenner Company sold at face value, a $1,000, 6% bond that...

Transcribed Image Text:

6. On January 1, 2014, Brenner Company sold at face value, a $1,000, 6% bond that pays interest semiannually on July 1 and January 1. Brenner Company has a calendar year end. The entry for the first payment of interest on July 1, 2014, is a. Cash......... Interest Payable...... b. Cash.............. Interest Revenue c. Interest Expense... Cash..... d. Interest Receivable...... Cash........ 30 30 60 60 30 60 60 30 30 60 60 60 60 Stocks (22 points) Bill Gates Corporation is authorized to sell 1,000,000 shares of $1 par value common stock. On August 15, the corporation issued 5,000 shares of common stock at $15 a share. On September 5, Bill Gates Corporation acquired 2,500 shares of its own $1 par common stock for $23 per share. On October 15, 1,000 shares of the treasury stock was sold for $25 per share. Instructions Journalize the purchase and sale of the common stock and treasury stock assuming that the company uses the cost method. 8/15 9/5 10/15 6. On January 1, 2014, Brenner Company sold at face value, a $1,000, 6% bond that pays interest semiannually on July 1 and January 1. Brenner Company has a calendar year end. The entry for the first payment of interest on July 1, 2014, is a. Cash......... Interest Payable...... b. Cash.............. Interest Revenue c. Interest Expense... Cash..... d. Interest Receivable...... Cash........ 30 30 60 60 30 60 60 30 30 60 60 60 60 Stocks (22 points) Bill Gates Corporation is authorized to sell 1,000,000 shares of $1 par value common stock. On August 15, the corporation issued 5,000 shares of common stock at $15 a share. On September 5, Bill Gates Corporation acquired 2,500 shares of its own $1 par common stock for $23 per share. On October 15, 1,000 shares of the treasury stock was sold for $25 per share. Instructions Journalize the purchase and sale of the common stock and treasury stock assuming that the company uses the cost method. 8/15 9/5 10/15

Answer rating: 100% (QA)

To journalize the purchase and sale of common stock and treasury stock for Bill Gates Corporation us... View the full answer