Le Tourneau Company had the following transactions pertaining to debt securities held as a I short - term investment.
Jan. 1 $\quad $Purchased 90, 6%, $1,000 Lido Company bonds for $90,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1 $\quad $Received semiannual interest on Lido Company bonds.
Oct. 1 $\quad $Sold 45 Lido Company bonds for $46,400 plus accrued interest.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.

Question

Le Tourneau Company had the following transactions pertaining to debt securities held as a I short - term investment.
Jan. 1  $\quad $Purchased 90, 6%, $1,000 Lido Company bonds for $90,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1  $\quad $Received semiannual interest on Lido Company bonds.
Oct. 1  $\quad $Sold 45 Lido Company bonds for $46,400 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 Le Tourneau Company had the following transactions pertaining to debt securities held as a I short - term investment.
Jan. 1  $\quad $Purchased 90, 6%, $1,000 Lido Company bonds for $90,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1  $\quad $Received semiannual interest on Lido Company bonds.
Oct. 1  $\quad $Sold 45 Lido Company bonds for $46,400 plus accrued interest.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.

Le Tourneau Company Had the Following Transactions Pertaining to Debt \quad

Le Tourneau Company Had the Following Transactions Pertaining to Debt $\quad$