Banaba Company had the following transactions in bond investment held as trading for the current year. Mar.1 Purchased 1,000 P1,000, 12% bonds of Lander Company at 90 excluding accrued interest. Interest is payable on February 1 and August 1. Apr. 1 Purchased 3,000, P1,000, 12% bonds of Narita Corporation at 92 plus accrued interest. Interest is payable March 1 and September 1. Oct. 1 Sold 500 of Narita bonds at 102 excluding accrued interest. Dec. 1 Sold all of the Lander bonds at 95 plus accrued interest 31 The market value of the Narita bonds is 90. Required; Prepare journal entries to record the transactions including receipt and accrued interest.
Banaba Company had the following transactions in bond investment held as trading for the current year. Mar.1 Purchased 1,000 P1,000, 12% bonds of Lander Company at 90 excluding accrued interest. Interest is payable on February 1 and August 1. Apr. 1 Purchased 3,000, P1,000, 12% bonds of Narita Corporation at 92 plus accrued interest. Interest is payable March 1 and September 1. Oct. 1 Sold 500 of Narita bonds at 102 excluding accrued interest. Dec. 1 Sold all of the Lander bonds at 95 plus accrued interest 31 The market value of the Narita bonds is 90. Required; Prepare journal entries to record the transactions including receipt and accrued interest.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 4E
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Banaba Company had the following transactions in bond investment held as trading for the current year.
Mar.1 Purchased 1,000 P1,000, 12% bonds of Lander Company at 90 excluding accrued interest. Interest is payable on February 1 and August 1.
Apr. 1 Purchased 3,000, P1,000, 12% bonds of Narita Corporation at 92 plus accrued interest. Interest is payable March 1 and September 1.
Oct. 1 Sold 500 of Narita bonds at 102 excluding accrued interest.
Dec. 1 Sold all of the Lander bonds at 95 plus accrued interest
31 The market value of the Narita bonds is 90.
Required;
Prepare
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