Kurtyka Corporation had the following transactions relating to debt investments: Jan. 1, 2017 Purchased 50, $1,000, 10%

Question:

Kurtyka Corporation had the following transactions relating to debt investments: Jan. 1, 2017 Purchased 50, $1,000, 10% Spiller Company bonds for $50,000. Interest is payable annually on January 1.

Dec. 31, 2017 Accrued interest on Spiller Company bonds.

Jan. 1, 2018 Received interest from Spiller Company bonds.

Jan. 1, 2018 Sold 30 Spiller Company bonds for $29,000.

(a) Journalize the transactions

(b) prepare the adjusting entry for the accrual of interest on December 31, 2017.

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...