Trafton Company had the following transactions pertaining to debt securities held as an investment.
Jan. 1 $\quad $Purchased 60, 8%, $1,000 Hammond Company bonds for $60,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1 $\quad $Received semiannual interest on Hammond Company bonds.
Sept. 1 $\quad $Sold 30 Hammond Company bonds for $32,000 plus accrued interest.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.

Question

Trafton Company had the following transactions pertaining to debt securities held as an investment.
Jan. 1  $\quad $Purchased 60, 8%, $1,000 Hammond Company bonds for $60,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1  $\quad $Received semiannual interest on Hammond Company bonds.
Sept. 1  $\quad $Sold 30 Hammond Company bonds for $32,000 plus accrued interest.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.

Quizplus · Accepted Answer

The Answer of Trafton Company had the following transactions pertaining to debt securities held as an investment.
Jan. 1  $\quad $Purchased 60, 8%, $1,000 Hammond Company bonds for $60,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1  $\quad $Received semiannual interest on Hammond Company bonds.
Sept. 1  $\quad $Sold 30 Hammond Company bonds for $32,000 plus accrued interest.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.

Trafton Company Had the Following Transactions Pertaining to Debt Securities \quad

Trafton Company Had the Following Transactions Pertaining to Debt Securities $\quad$