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da Tema #5 (E): Inversiones Financiers Terminal #S: Los estudiantes diferenciará

ID: 2601356 • Letter: D

Question

da Tema #5 (E): Inversiones Financiers Terminal #S: Los estudiantes diferenciarán la manera de co financieras. cribirá porqué las empresas hacen una inversión Capacitantes #1 : El estudiante des financiera. ness make financial investments. (Shows references are required) 25. Describe why busi Capacitantes #2: El estudiante registrará transacciones relacionadas a inversiones financieras en deuda y acciones 26, On January 1, 2017, Parsons Company purchased $84,000, 10 year, 7% government bonds at 100. The semi-annual interest payment dates are June 30 and December 31. Required: (Shows computations and references are required) (1) Journalize the entry to record the bond purchase. (2) Journalize the receipt of interest at June 30 and December 31, 2017. (3) Journalize the February 1, 2018 sale of the bonds for $82,000 plus accrued interest for one month. Debit Credit

Explanation / Answer

Solution:

a. 2017 Sept. 1

Investments—Government Bonds       84,000

                                                  Interest Receivable………...........980*

                                                  Cash……………………………..84,980*

$84,000 x 7%2/12 = 980

b.2017 Dec.31

Cash……………………2,940 *

                          Interest   Receivable……………..980

                          Interest Revenue ……………….1,960

(84,000 x 7% x 6/12)

c. 2018

Feb. 1     

Cash………………………………………….82,490*

Loss on Sale of Investments……............…2,000

Investments—Government Bonds …………..84,000

Interest Revenue ………………....……………490

(84,000 * 7% x 6/12)