31 Dec 31 Accrual of interest at yearend on the Javier bonds

31. Dec. 31 Accrual of interest at year-end on the Javier bonds 2020 Jan. 1 Sold $574,000 Javier bonds at 105 Dec. 31 Accrual of interest at year-end on the Javier bonds the amounts. Round a to o

Solution

Journal Entries for the year 2017 and 2020 Date Account Titles and Explanation Debit Credit Jan.1,2017 Bonds Receivables $1,148,000.00 Cash $1,148,000.00 (to record purchase of Javier bonds) Dec.31,2017 Interest Receivable on bonds $114,800.00 Interest Income $114,800.00 (to record interest accrued on bonds) Jan.1,2020 Cash $114,800.00 Interest Receivable on bonds $114,800.00 (to record interest received on bonds) Jan.1,2020 Cash $602,700.00 Gain on sale of bonds $28,700.00 Bonds Receivables $574,000.00 (to record part sale of Javier bonds at 105) Dec.31,2020 Interest Receivable on bonds $57,400.00 Interest Income $57,400.00 (to record interest accrued on bonds)