Homework Answers
| Journal entries: | ||||
| Date | Account Titles and Explanation | Debit | Credit | |
| Feb 1 2018 | Bonds in Kipple company | 900000 | ||
| Cash | 900000 | |||
| (Bonds purchased) | ||||
| Dec 31 2018 | Interest receivable | 74250 | ||
| Interest revenue | 74250 | |||
| (900000*9%*11/12) | ||||
| (Interest for 11 month accrued) | ||||
| Dec 312018 | Unrealized loss on trading securities | 27000 | ||
| Bonds in Kipple company | 27000 | |||
| [900000-(900000/100)*97] | ||||
| (Change in market value recorded) | ||||
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