Question

PILllem Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks Products For a compound transaction, if an amount box does not require an entry, leave it blank. a. Purchased for cash $66,000 of Iceline, Inc. 8% bonds at 100 plus accrued interest of $880, paying interest semiannually Investments-Iceline, Inc. Bonds 66,000 Interest Receivable Cash 66,880 b. Received first semiannual interest payment. Cash Interest Receivable Interest Revenue c. Sold $44,000 of the bonds at 102 plus accrued interest of $330. Cash Interest Revenue Gain on Sale of Investments Investments-Iceline, Inc. Bonds

Answer 1

credit a Debit Investment Ice line Inc Bonds $66000 $ 880 Interest Receivable cash $66880 6 66000 x 8-%/XL = 2640 $2640 Cash Interest Interest Receivable Revenue to to $1760 ② @ 102 sold Gold suuooo of bonds for 44000 x102 100 4u880 sale is = $880 = Gain on $45210 $330 Cash Interest Revenue gain on sale of Invest - ments Investments Iceline Inc Bonds $880 44000