On September 1, 2012, Parsons Company purchased $84,000, 10 year, 7% government bonds at 100 plus accrued

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On September 1, 2012, Parsons Company purchased $84,000, 10 year, 7% government bonds at 100 plus accrued interest. The semi-annual interest payment dates are June 30 and December 31. Interest calculations are done by the month.

Required:

Journalize the entry to record the bond purchase.

Journalize the receipt of interest on December 31, 2012.

Journalize the February 1, 2013 sale of the bonds for $82,000 plus accrued interest.

For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

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Financial Accounting Tools for business decision making

ISBN: 978-0470534779

6th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Posted Date: May 25, 2018 01:10 AM

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On September 1, 2012, Parsons Company purchased $84,000, 10 year, 7% government bonds at 100 plus accrued

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Date Account Title and Explanation Debit Credit 1Sep InvestmentsGovernment Bonds 84000 2012 Inter... View the full answer

Financial Accounting Tools for business decision making

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