The Old Country Company purchased the following instruments during the year. Assume the company's fiscal year end is January 31, 2022.

Dec 1, 2021           Purchased a $ 5,000 120-day treasury bill for $ 4,935. The treasury bills are trading at a market rate of interest of 4% annually.

Feb 1, 2022           Purchased at 101 a $ 15,000, 5% 5-year Laurent Bank of Canada bond. Interest is paid semi-annually. The market rate of interest was 3.5%. The bonds were purchased to trade.

Mar 30, 2022         Treasury bill matured.

Aug 1, 2022           Received interest on the Laurent Bank of Canada bond.

Aug 2, 2022           Sold the Laurent Bank of Canada bond at 99.

Required:

Record the above transactions, and any necessary adjusting entries for The Old Country Company required at January 31, 2022

Answer rating: 100% (QA)

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