Entries for bond (held-to-maturity) investments
Demopoulos Company acquired $142,200 of Marimar Co., 4% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Demopoulos Company sold $47,400 of the bonds for 96.
Journalize the entries to record the following:
If an amount box does not require an entry, leave it blank.
a. The initial acquisition of the bonds on May 1.
May 1
CashInterest ReceivableInterest RevenueInvestments-Marimar Co. BondsNotes Receivable
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CashInterest ReceivableInterest RevenueInvestments-Marimar Co. BondsNotes Receivable
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b. The semiannual interest received on November 1.
Nov. 1
CashInterest ReceivableInterest RevenueInvestments-Marimar Co. BondsNotes Receivable
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CashInterest ReceivableInterest RevenueInvestments-Marimar Co. BondsNotes Receivable
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c. The sale of the bonds on November 1.
Nov. 1
CashGain on Sale of InvestmentsInterest ReceivableInterest RevenueInvestments-Marimar Co. Bonds
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Gain on Sale of InvestmentsInterest ReceivableInterest RevenueLoss on Sale of InvestmentsNotes Receivable
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CashGain on Sale of InvestmentsInterest ReceivableInvestments-Marimar Co. BondsNotes Receivable
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d. The accrual of $632 interest on December 31.
Dec. 31
CashInterest ReceivableInterest RevenueInvestments-Marimar Co. BondsNotes Receivable
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CashInterest ReceivableInterest RevenueInvestments-Marimar Co. BondsNotes Receivable
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