contestada

The following transactions for Wolfe Corporation relate to long-term bonds classified as available-for-sale: 2018 Jan. 1 Purchased $50,000 Lake Corporation 10% bonds for $50,000. July 1 Received interest on Lake bonds. Dec. 31 Accrued interest on Lake bonds. Dec. 31 Market value of the bonds $55,000, prepare the adjusting entry to record bonds at market value. 2019 Jan. 1 Received interest on Lake bonds. Jan. 1 Sold $25,000 Lake bonds for $26,650. July 1 Received interest on Lake bonds. a) Journalize the transactions.

Respuesta :

jepessoa

Answer:

2018 Jan. 1 Purchased $50,000 Lake Corporation 10% bonds for $50,000.

  • Dr 10% bonds available for sale 50,000
  •     Cr Cash 50,000

available for sale

July 1 Received interest on Lake bonds.

  • Dr Cash 2,500
  •     Cr Interest revenue on 10% bonds available for sale 2,500

Dec. 31 Accrued interest on Lake bonds.

  • Dr Interest receivable 10% bonds available for sale 2,500
  •     Cr Interest revenue 10% bonds available for sale 2,500

Dec. 31 Market value of the bonds $55,000, prepare the adjusting entry to record bonds at market value. 2019

  • Dr 10% bonds available for sale 5,000
  •     Cr Unrealized gain - other comprehensive income 5,000

Jan. 1 Received interest on Lake bonds.

  • Dr Cash 2,500
  •     Cr Interest receivable on 10% bonds available for sale 2,500

Jan. 1 Sold $25,000 Lake bonds for $26,650.

  • Dr Cash 26,650
  • Dr Unrealized gain - other comprehensive income 2,500
  •     Cr 10% bonds available for sale 27,500
  •     Cr Realized gain on 10% bonds available for sale 1,650

July 1 Received interest on Lake bonds.

  • Dr Cash 1,250
  •     Cr Interest receivable on 10% bonds available for sale 1,250

Otras preguntas