Capitulo $15$

$2$

Exercise $15-5($Static$)$ Accounting for available$-$for$-$sale debt securities LO P$3$

Prepare Krum Company's journal entries to record the following transactions involving its short$-$term investments in available$-$for$-$sale debt securities$,$ all of which occurred during the current year.

$2$ points eBook Hint

References

a$.$ On August $1,$ paid $$50,000$ cash to purchase Houtte's $9\%,$ six$-$month debt securities principal$),$ dated August $1.$

b$.$ On October $30,$ received a check from Houtte for $90$ days' interest on the debt securities in transaction $a.$

Note: Use $360$ days in a year. Do not round your intermediate calculations.

Journal entry worksheet

$12$

On August $1,$ paid $$50,000$ cash to purchase Houtte's $9\%,$ six$-$month debt securities $($ $$50,000$ principal$),$ dated August $1.$

Note: Enter debits before credits.