On 11-01-18, Barn purchased 40 of Potterys $1,000, 3% bonds for $40,200. The Pottery bonds were dated
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On 11-01-18, Barn purchased 40 of Pottery’s $1,000, 3% bonds for $40,200. The Pottery bonds were dated 11-01-18 and will mature on 11-01-23. The barn will receive interest every May 1 and November 1. On 02-01-20, Barn sold the bonds at 102 plus interest. The Pottery bonds are Barn’s only investment in bonds. Barn classified the bonds as an available-for-sale investment. Barn closes its books every 12-31.
The bonds were trading at the following amounts as of the following dates:
- 12-31-18 98
- 12-31-19 101
- 12-31-20 102
Prepare the entries B should make on:
- 11-01-18.
- 12-31-18.
- 05-01-19.
- 11-01-19.
- 12-31-19.
- 02-01-20.
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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