Glaser Company had the following transactions pertaining to debt securities held as a short-term investment.
Jan. 1 Purchased 50, 8%, $1,000 Adcock Company bonds for $50,000 cash plus brokerage fees of $800. Interest is payable semiannually on July 1 and January 1.
July 1 Received semiannual interest on Adcock Company bonds.
Oct. 1 Sold 30 Adcock Company bonds for $32,000 plus accrued interest less $500 brokerage fees.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.

Question

Quizplus · Accepted Answer

The Answer of Glaser Company had the following transactions pertaining to debt securities held as a short-term investment.
Jan. 1 Purchased 50, 8%, $1,000 Adcock Company bonds for $50,000 cash plus brokerage fees of $800. Interest is payable semiannually on July 1 and January 1.
July 1 Received semiannual interest on Adcock Company bonds.
Oct. 1 Sold 30 Adcock Company bonds for $32,000 plus accrued interest less $500 brokerage fees.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.

Glaser Company Had the Following Transactions Pertaining to Debt Securities