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CaHeK987 [17]
3 years ago
14

On August 1, 2021, Dambro Company acquired 1,200, $1,000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2018

, and mature on April 30, 2027, with interest paid each October 31 and April 30. The bonds will be added to Dambro's available-for-sale portfolio. The preferred entry to record the purchase of the bonds on
Business
1 answer:
bogdanovich [222]3 years ago
4 0

Answer:

Dr Debt Investments 1,164,000

Dr Interest Revenue 27,000

Cr Cash 1,191,000

Explanation:

Preparation of The preferred entry to record the purchase of the bonds

Based on the information given the preferred journal entry to record the purchase of the bonds will be :

Dr Debt Investments 1,164,000

(1,200 × $1,000 × .97)

Dr Interest Revenue 27,000

($1,200,000 × .09 × 3/12)

(04/31 – 08/01)

Cr Cash 1,191,000

($1,164,000 + $27,000)

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3 years ago
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What type of stores rely on their large size and very deep selection to try to dominate the market?
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The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane. Although the basis o
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