Cengage Entries for investments in bonds, interest, and sale of bonds Kalvagin I

Question

Cengage Entries for investments in bonds, interest, and sale of bonds Kalvagin Investments acquired $256,800 of 3erris Corp., 9% bonds at their face amount on otober 1, 2016. The bonds pay interest on October 1 and April 1. On April 1, 2017, Kalyagin sold $72,000 of Serris Corp., bonds at 103. Journalkize the entries toe record the felowing (refer to the Chart of Accounts for exact wording of account bieles and be sure to enter the year as part of the date) 1 Initial acquisition of the Jerris Corp, bonds Dec. 012 Apr. 31 Adjusting entry for three months of accrued interest earned on the Jerris Corp, bonds Receipt of semiannual interest Sale of $72,000 of Jerris Corp, bonds, at 103 1 Type here to search 5 6 7 8 9

Explanation / Answer

JOURNAL

2016
October 1 9% Bonds A/c Dr. 256,800
To Bank A/c 256,800

December 31 Accrued Interest A/c Dr. 5,778
To Interest A/c 5,778

2017
April 1 Bank A/c Dr. 11,556
To Accrued Interest A/c 5,778
To Interest A/c 5,778

April 1 9% Bonds A/c Dr. 72,000
Profit & Loss A/c Dr. 2.160
To Bank A/c   74,160

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