Jenek Corporation had the following transactions pertaining to debt investments. 1. Purchased 40 Leeds Co. 9% bonds

Question:

Jenek Corporation had the following transactions pertaining to debt investments.
1. Purchased 40 Leeds Co. 9% bonds (each with a face value of $1,000) for $40,000 cash. Interest is payable annually on January 1, 2020.
2. Accrued interest on Leeds Co. bonds on December 31, 2020.
3. Received interest on Leeds Co. bonds on January 1, 2021.
4. Sold 30 Leeds Co. bonds for $33,000 on January 1, 2021.

Instructions
Journalize the transactions.

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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...

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