Floyd Corporation had the following transactions pertaining to debt investments.Jan. 1 Purchased 50 8%, $1,000 Petal Co. bonds for $50,000 cash plus brokerage fees of $900.Interest is payable semiannually on July 1 and January 1.July 1 Received semiannual interest on Petal Co. bonds.July 1 Sold 30 Petal Co. bonds for $34,000 less $500 brokerage fees.Instructions(a) Journalize the transactions.(b) Prepare the

Chapter 16, Exercises #2

Floyd had the following transactions pertaining to debt investments.
Jan. 1 Purchased 50 8%, $1,000 Petal Co. bonds for $50,000 cash plus brokerage fees of $900.
Interest is payable semiannually on July 1 and January 1.
July 1 Received semiannual interest on Petal Co. bonds.
July 1 Sold 30 Petal Co. bonds for $34,000 less $500 brokerage fees.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest at December 31.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...