1. Investment in debt securities at premium. (15 points) On April 1, 2018, West Company purchased...
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1. Investment in debt securities at premium. (15 points) On April 1, 2018, West Company purchased $600,000 of 6% bonds for $623,625 plus accrued interest as an available-for-sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2023. Instructions (a) Prepare the journal entry on April 1, 2018. (b) The bonds are sold on November 1, 2019 at 103 plus accrued interest. Amortization was recorded when interest was received by the straight-line method (by months and round to the nearest dollar). Prepare all entries required to properly record the sale. 1. Investment in debt securities at premium. (15 points) On April 1, 2018, West Company purchased $600,000 of 6% bonds for $623,625 plus accrued interest as an available-for-sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2023. Instructions (a) Prepare the journal entry on April 1, 2018. (b) The bonds are sold on November 1, 2019 at 103 plus accrued interest. Amortization was recorded when interest was received by the straight-line method (by months and round to the nearest dollar). Prepare all entries required to properly record the sale.
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a Prepare the journal entry on April 1 2018 Date Account Titles an... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259307959
4th edition
Authors: David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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