Maxim Corporation had the following transactions pertaining to debt investments.
Jan. 1 Purchased 80 8% $1000 Woodrow Company bonds for $80000.
July 1 Sold 20 Woodrow Company bonds for $21500.
Instructions
Prepare journal entries for the purchase and sale of the Woodrow Company bonds.

Question

Ekhlas Al Sarmi · Accepted Answer

Final Answer :   Jan. 1  Debt Investments.  80 , 000  Cash  8 , 000  July 1  Cash  21 , 500  Debt Investments  ( $ 80 , 000 × 1 / 4 )   20 , 000  Gain on Sale of Debt Investments  1 , 500 \begin{array}{llr}  	ext { Jan. 1 \quad Debt Investments. }  & 80,000\\quad\quad\quad\quad 	ext { Cash }  & & 8,000\\ 	ext { July 1 \quad Cash }  & 21,500\ \quad\quad\quad\quad	ext { Debt Investments   (\$ 80,000 	imes 1 / 4)   }  & & 20,000\\quad\quad\quad\quad 	ext { Gain on Sale of Debt Investments }  & & 1,500\\end{array}  Jan. 1  Debt Investments.   Cash   July 1  Cash   Debt Investments  ( $80 , 000 × 1/4 )    Gain on Sale of Debt Investments  ​ 80 , 000 21 , 500 ​ 8 , 000 20 , 000 1 , 500 ​

Maxim Corporation had the following transactions pertaining to debt investments.
Jan. 1 Purchased 80 8% $1000 Woodrow Company bonds for $80000.
July 1 Sold 20 Woodrow Company bonds for $21500.
Instructions
Prepare journal entries for the purchase and sale of the Woodrow Company bonds.

Definitions

Learning Objectives

Learning Objectives

Related questions

Maxim Corporation had the following transactions pertaining to debt investments.Jan. 1 Purchased 80 8% $1000 Woodrow Company bonds for $80000.July 1 Sold 20 Woodrow Company bonds for $21500.InstructionsPrepare journal entries for the purchase and sale of the Woodrow Company bonds.

Definitions

Learning Objectives

Learning Objectives

Related questions

Maxim Corporation had the following transactions pertaining to debt investments.
Jan. 1 Purchased 80 8% $1000 Woodrow Company bonds for $80000.
July 1 Sold 20 Woodrow Company bonds for $21500.
Instructions
Prepare journal entries for the purchase and sale of the Woodrow Company bonds.