On January 1, 2013, Dagwood
Company purchased at par 12% bonds having a maturity value of $300,000.
E17-2
(Entries for Held-to-Maturity Securities) On January 1, 2013,
Dagwood Company purchased at par 12% bonds having a maturity value of $300,000.
They are dated January 1, 2013, and mature January 1, 2018, with interest
receivable December 31 of each year. The bonds are classified in the
held-to-maturity category.
Instructions:
(a) Prepare the journal entry at the date of the bond
purchase.
(b)
Prepare the journal entry to record the interest received for 2013.
(c)
Prepare the journal entry to record the interest received for 2014.
TUTORIAL PREVIEW
(a) Prepare the journal entry at the date of the bond
purchase.
|
Jan
1, 13
|
Debt
Investments (Held-to-Maturity)
|
300,000
|
|
|
Cash
|
|
300,000
|
File name: E17-2 Dagwood Company.xls File type: xls PRICE: $4
