Forte Corporation had the foilowing transactions in 2017 pertaining to debt investments. 1. Purchased 60 10%,...
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Forte Corporation had the foilowing transactions in 2017 pertaining to debt investments. 1. Purchased 60 10%, $1,000 Wolfe Co. bonds for $61,200 cash on January 1, 2017. Interest is payable annually on January 1. 2. Accrued interest on Wolfe Co. bonds on December 31, 2017. 3. Received interest on Wolfe Co. bonds on January 1, 2018 4. Sold 35 Wolfe Co. bonds for $38,500 on January 1, 2018. Instructions: (a) Journalize the transactions. (b) Prepare the adjusting entry for the accrual of interest at December 31, 2018. (c) Indicate how interest receivable and interest revenue is reported in the 2018 financial statements, including the amounts. Forte Corporation had the foilowing transactions in 2017 pertaining to debt investments. 1. Purchased 60 10%, $1,000 Wolfe Co. bonds for $61,200 cash on January 1, 2017. Interest is payable annually on January 1. 2. Accrued interest on Wolfe Co. bonds on December 31, 2017. 3. Received interest on Wolfe Co. bonds on January 1, 2018 4. Sold 35 Wolfe Co. bonds for $38,500 on January 1, 2018. Instructions: (a) Journalize the transactions. (b) Prepare the adjusting entry for the accrual of interest at December 31, 2018. (c) Indicate how interest receivable and interest revenue is reported in the 2018 financial statements, including the amounts.
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S No Date Account Titles Debit Credit 1 Jan 12017 Investment in bonds 60000 ... View the full answer
Related Book For
Hospitality Financial Accounting
ISBN: 978-0470083604
2nd Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.
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