Determine the interest earned by Hansen Company

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Problem - On February 1, Hansen Company purchased $120,000 of 5%, 20-year Knight Company bonds at their face amount plus one month's accrued interest. The bonds pay interest on January 1 and July 1. On October 1, Hansen Company sold $40,000 of the Knight Company bonds acquired on February 1, plus three months' accrued interest. On December 31, three months' interest was accrued for the remaining bonds.

Required - Determine the interest earned by Hansen Company on Knight Company bonds for the year.

Reference no: EM132692261

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