Fill in the shaded blanks with the proper account name or the correct amount bas

Question

Fill in the shaded blanks with the proper account name or the correct amount based on the following bond transactions: 8a) Purchased Taylor Co. 10% bonds for $42,000 at 100 plus 1 month accrued interest of $350 Dr. Cr. Investment-Taylor Co. Bonds $42,000 350 Cash 42,350 8b.) Received the first semi-annual interest payment Cash 2,100 Interest Receivable 350 1750 8c.) Sold $ 30,000 of the bonds at 102 plus two months accrued interest Cash Interest Revenue Gain on the Sale of Investment-Taylor Co. Bonds Investment-Taylor Co. Bonds 30,000

Explanation / Answer

DR CR    8a Investment -Taylor Co Bonds 42000 Interest Receivable 350 Cash 42350    8b Cash 2100 Interest Receivable 350 Interest Revenue 1750    8c Cash =30000*1.02+30000*10%/12*2 31100 Interest Revenue =30000*10%/12*2 500 Gain on sales of Investment 600 Investment -Taylor Co Bonds 30000

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