In: Accounting
Journalize the entries to record the following selected bond investment transactions for Southwest Bank: Refer to the Chart of Accounts for exact wording of account titles.
Apr. 1 | Purchased $400,000 of Daytona Beach 4.5% bonds at 100 plus accrued interest of $4,500. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 1 | Received the first semiannual interest. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sept. 1 |
Sold $250,000 of the bonds at 97, plus accrued interest of $1,875.
|
Date |
Description |
Post Ref. |
Debit |
Credit |
1-Apr |
Investments-Daytona Beach Bonds |
161 |
$ 400,000.00 |
|
Interest Revenue |
611 |
$ 4,500.00 |
||
Cash |
110 |
$ 404,500.00 |
||
(bonds purchased and interest paid on bonds till date) |
||||
1-Jul |
Cash |
110 |
$ 9,000.00 |
|
Interest Revenue |
611 |
$ 9,000.00 |
||
(Interest on Bonds Receiced) |
||||
1-Sep |
Cash |
110 |
$ 244,375.00 |
|
Loss on Sale of Investments |
731 |
$ 7,500.00 |
||
Investments-Daytona Beach Bonds |
161 |
$ 250,000.00 |
||
Interest Revenue |
611 |
$ 1,875.00 |
||
(Bonds sold and loss on sale recorded) |
||||
$ 665,375.00 |
$ 665,375.00 |