Exercise 16-2 Jenek Corporation had the following transactions pertaining to deb

Question

Exercise 16-2 Jenek Corporation had the following transactions pertaining to debt investments. Jan. 1 Purchased 60 8%, $1,900 Leeds Co. bonds for $114,000 cash. Interest is payable semiannually on July 1 and January 1. July 1 Received semiannual interest on Leeds Co. bonds. July 1 Sold 36 Leeds Co. bonds for $77,520. Exercise 16-6 On February 1 Rinehart Company purchased 900 shares 2% ownership of avens Company co mo stock for $30 per share On March 20, Rhehat Company sold i80 shares of G e s stock for $5,220, Rinehart received a dividend of $2.11 per share on Apr. 25·On June 15, Rinehart sold 360 shares of Gvens stock for $13,320 On My 28, Rinehart recened s hdr. entered. Do not indent manually. It o entry Prepare the journal entries to record the transactions described above. (Credit account tities are automaticaly Indented when amount is required, select "No entry" for the account titles and enter for the amounts. Round answers to 0 decimal places, eosrs) Credit Date Account Titles and Feb. 1 Mar. 20 Apr. 25 June 15

Explanation / Answer

Journal Entry

1)Jan-1

DEbit Investment in 8% Bonds of Leed Co = 114,000

Credit Cash = 114,000

..

2)July-1

Debit Cash = 80

Credit Interest on Bond = 80

..

3)July-1

Debit Cash = 77,520

Credit Investment in 8% Bonds of Leed Co = 68,400

Credit Profit on Sale of Bonds = 9,120

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