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Bond Investment Transactions Journalize the entries to record the following selected bond investment transactions for Starks...

Bond Investment Transactions

Journalize the entries to record the following selected bond investment transactions for Starks Products:

For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Purchased for cash $96,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $1,440, paying interest semiannually.

Investments-Iceline, Inc. Bonds
Interest Receivable
Cash

b. Received first semiannual interest payment.

Cash
Interest Receivable
Interest Revenue

c. Sold $64,000 of the bonds at 102 plus accrued interest of $490.

Cash
Interest Revenue
Gain on Sale of Investments
Investments-Iceline, Inc. Bonds
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Answer #1

a. Purchased for cash $96,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $1,440, paying interest semiannually.

Investments-Iceline, Inc. Bonds 96000
Interest Receivable 1440
Cash 97440

b. Received first semiannual interest payment.

Cash 4320
Interest Receivable 1440
Interest Revenue 2880

c. Sold $64,000 of the bonds at 102 plus accrued interest of $490.

Cash (64000*1.02+490) 65770
Interest Revenue 490
Gain on Sale of Investments 1280
Investments-Iceline, Inc. Bonds 64000
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