Sorrey Company acquired $75,000 of Clayton Co., 6% bonds on April 1, 2014, at their face amount.

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Sorrey Company acquired $75,000 of Clayton Co., 6% bonds on April 1, 2014, at their face amount. Interest is paid semiannually on April 1 and October 1. On October 1, 2014, Sorrey Company sold $25,000 of the bonds for 98.

Journalize entries to record the following:

a. The initial acquisition of the bonds on April 1.

b. The semiannual interest received on October 1.

c. The sale of the bonds on October 1.

d. The accrual of $750 interest on December 31, 2014.

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Corporate Financial Accounting

ISBN: 978-1133952411

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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Question Posted: Feb 28, 2014 08:52 AM

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Sorrey Company acquired $75,000 of Clayton Co., 6% bonds on April 1, 2014, at their face amount.

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a 2014 Apr 1 InvestmentsClayton Co Bonds 75000 Cash 75000 b ...View the full answer

Corporate Financial Accounting

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