Please prepare the following journal entries to record the sale of bonds on Jan 1,...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Please prepare the following journal entries to record the sale of bonds on Jan 1, 2022
Current Attempt in Progress On January 1, 2020, Blue Spruce Company purchased $304,000 worth of 8% bonds of Aguirre Co.for $280,526. The bonds were purchased to yield 10% interest. Interest is payable semi-annually, on July 1 and January 1. The bonds mature on January 1, 2025, Blue Spruce Company uses the effective interest method to amortize the discount or premium. On January 1, 2022, to meet its liquidity needs, Blue Spruce Company sold the bonds for $281,752, after receiving interest. Debit Credit Date Account Titles and Explanation Jan. 1 (To adjust to fair value at date of disposal) Jan. 1 (To record disposal) Jan. 1 (To reclassify holding loss)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
