Question - Provide answers for Mr. Willington
Floyd Corporation had the following transactions pertaining to debt investments.
Jan 1 purchased 50 8%, 1,000 Petal Co. bonds for $50,000 cash plus brokerage fees $900. Interest is payable semiannually on July 1 and January 1.
July 1 Received semiannual interest on Petal Co. bonds.
July 1 Sold 30 Petal Co. bonds for $34,000 less $500 brokerage fees.
Instructions:
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest at December 31.