Albright Company purchased as a long-term investment $500,000 of Benton Corporation 10-year, 9% bonds. Present entries to record the following selected transactions:
(a)Purchased bonds at 93 for $465,000.(b)Sold half the bonds at 98 plus accrued interest of $4,000. The broker deducted $200 for brokerage fees and taxes, remitting the balance. The bonds were carried at $479,000 at the time of the sale.

Question

Quizplus · Accepted Answer

The Answer of Albright Company purchased as a long-term investment $500,000 of Benton Corporation 10-year, 9% bonds. Present entries to record the following selected transactions:
(a)Purchased bonds at 93 for $465,000.(b)Sold half the bonds at 98 plus accrued interest of $4,000. The broker deducted $200 for brokerage fees and taxes, remitting the balance. The bonds were carried at $479,000 at the time of the sale.

Albright Company Purchased as a Long-Term Investment $500,000 of Benton