The following bond investment transactions were completed during 2012 by Mission Company: Jan. 21. Purchased 50, $1,000
Question:
Jan. 21. Purchased 50, $1,000 par value government bonds at 100 plus 20 days’ accrued interest. The bonds pay 4.5% annual interest on June 30 and January 1.
June 30. Received semiannual interest on bond investment.
Sept 5. Sold 24, $1,000 par value bonds at 97 plus $201 accrued interest.
a. Journalize the entries for these transactions.
b. Provide the December 31, 2012, adjusting journal entry for semiannual interest earned from the bond.
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a 2012 Jan 21 InvestmentsGovernment Bonds 50000 Interest Receivable 125 Cash 50125 50000 45 ...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
2+ Reviews
10+ Question Solved
Related Book For 
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
