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Horten Company's short term investment

Horten Company had the following transactions pertaining to debt securities held as a short-term investment.

Jan. 1 Purchased 30, 8%, $1,000 Edwards Company bonds for $30,000 cash plus brokerage fees of $600. Interest is payable semiannually on July 1 and January 1.

July 1 Received semiannual interest on Edwards Company bonds.

Oct. 1 Sold 15 Edwards Company bonds for $16,000 plus accrued interest less $300 brokerage fees.

INSTRUCTIONS
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.

Solution Preview

Please find my response in the attached file below. Hope this helps, and good luck with your study.

Horten Company had the following transactions pertaining to debt securities held as a short-term investment.
Jan. 1 Purchased 30, 8%, $1,000 Edwards Company bonds for $30,000 cash
plus brokerage fees of $600. Interest is payable semiannually on July 1 and January ...

Solution Summary

This solution is comprised of a detailed explanation to answer the request of the assignment in excel file.

$2.19