The following bond investment transactions were completed during 2012 by Mission Company: Jan. 21. Purchased 50, $1,000

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The following bond investment transactions were completed during 2012 by Mission Company:
Jan. 21. Purchased 50, $1,000 par value government bonds at 100 plus 20 days’ accrued interest. The bonds pay 4.5% annual interest on June 30 and January 1.
June 30. Received semiannual interest on bond investment.
Sept 5. Sold 24, $1,000 par value bonds at 97 plus $201 accrued interest.
a. Journalize the entries for these transactions.
b. Provide the December 31, 2012, adjusting journal entry for semiannual interest earned from the bond.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For  answer-question

Financial and Managerial Accounting

ISBN: 978-0538480895

11th Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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