Odlaw Corporation had the following transactions relating to debt investments: Jan. 1 Purchased 50, $1,000, 12% Clinton Company bonds for $50,000 plus brokers fees of $1,500. Interest is payable semiannually on January 1 and July 1 July 1 Received semiannual interest from Clinton Company bonds. July 1 Sold 30 Clinton Company bonds for $30,000, less $800 brokers fees. (a) Journalize

Chapter 16, DO IT! Review #1

Odlaw Corporation had the following transactions relating to debt investments:

Jan. 1 Purchased 50, $1,000, 12% Clinton Company bonds for $50,000 plus broker’s fees of $1,500. Interest is payable semiannually on January 1 and July 1

July 1 Received semiannual interest from Clinton Company bonds.

July 1 Sold 30 Clinton Company bonds for $30,000, less $800 broker’s fees.

(a) Journalize the transactions, and

(b) Prepare the adjusting entry for the accrual of interest on 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...