Question

Bond Investment Transactions

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

For a compound transaction, if an amount box does not require an entry, leave it blank. a. Purchased for cash $114,000 of Hart Industries 9% bonds at 100 plus accrued interest of $1,710. b. Received first semiannual interest payment. c. Sold $76,000 of the bonds at 102 plus accrued interest of $580. I know ‘A’, but I’m having trouble with ‘b’ and ‘c’. For ‘b’, I’m having trouble with ‘cash’ which is saying $3990 is incorrect and also having trouble with interst revenu which is saying htat $2660 is incorrect. For ‘c’, I’m having trouble with cash and gain of sale on investments’.

 



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