Transactions pertaining to debt investments

Assignment Help Accounting Basics

Reference no: EM13701756

Foren Corporation had the following transactions pertaining to debt investments.

Jan. 1 Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1.

July 1 Received semiannual interest on Choate Co. bonds.

July 1 Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees.

Instructions

(a) Journalize the transactions.

(b) Prepare the adjusting entry for the accrual of interest at December 31.

Reference no: EM13701756

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