urgent need an hour will rate Journalize the entries to reco

urgent need an hour will rate

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.

Chart Of Accounts

General Journal

Journalize each of the entries to record the selected bond investment transactions for Southwest Bank. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

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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.

Solution

Date General Journal Debit Credit Apr. 1 Bond Investments—Daytona Beach Bonds $400,000 Interest Receivable $4,500 Cash $404,500 July 1 Cash $9,000 Interest Receivable $4,500 Interest Revenue $4,500 Sept. 1 Cash $244,375 Loss on Sale of Investments $7,500 Interest Revenue $1,875 Bond Investments $250,000