E12-2

keryda

 Foren Corporation had the following transactions pertaining to debt investments.

 Jan.     1     Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of

                    $900. Interest is payable semiannually on July 1 and January 1.

 July      1     Received semiannual interest on Choate Co. bonds.

 July      1     Sold 30 Choate 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. 

    • 12 years ago
    • 5
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