Asked by ricardo Velazquez on Jun 29, 2024
Verified
Journalize the entries to record the following selected bond investment transactions for Southwest Bank:Apr. 1Purchased $400,000 of Daytona Beach 4.5% bonds at 100 plus accrued interest of $4,500.July 1Received the first semiannual interest.Sept. 1Sold $250,000 of the bonds at 97, plus accrued interest of $1,875.
Accrued Interest
Interest that has been incurred but not yet paid, reflecting the cost of borrowing or the earnings from lending money over a specific period.
Semiannual Interest
Interest on a loan or investment calculated and paid twice a year, typically at a fixed rate.
- Master the technique of entering bond transactions in accounts, involving their buying, interest earning, and selling.
Verified Answer
LK
Learning Objectives
- Master the technique of entering bond transactions in accounts, involving their buying, interest earning, and selling.