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133 on august 1 2011 airport company sold paxton company 1 000 000 of 10 year 6 bond 4295203

 

133. On August 1, 2011, Airport Company sold Paxton Company $1,000,000 of 10-year, 6% bonds, dated July 1 at 100 plus accrued interest.  On March 1, 2012, Paxton sold half of the bonds for $520,000 plus accrued interest.  Present entries to record the following transactions:
 

Paxton Company:

(1)

Purchase of bonds on August 1, 2011.

(2)

Receipt of first semiannual interest amount on December 31, 2011.

(3)

The sale of the bonds on March 1, 2012.

 

 

 

 

 

 

 

 

134. Journalize the entries to record the following selected transactions of Oliver Co.:
 

(a)

Purchased $100,000 of Kruse Co. 8% bonds at par value plus accrued interest of $2,000.

(b)

Received first semiannual interest payment.

(c)

Sold the bonds at 97 plus accrued interest of $1,500.

 

 

 

 

 

 

 

 

135. Albright Company purchased as a long-term investment $500,000 of Benton Corporation 10-year, 9% bonds.  Present entries to record the following selected transactions:
 

(a)

Purchased bonds for $465,000.

(b)

Sold half the bonds at 98 plus accrued interest of $4,000.  The broker deducted $200 for brokerage fees and taxes, remitting the balance.  The bonds were carried at $479,000 at the time of the sale.

 

 

 

 

 

 

 

 

136. Prepare the journal entries for the following transactions for Batson Co.
 

(a)

Batson Co. purchased 1,200 shares of the total of 100,000 outstanding
shares of Michael Corp. stock for $20.75 per share plus a $70 commission.

(b)

Michael’s total earnings for the period are $84,000.

(c)

Michael paid a total of $40,000 in cash dividends to shareholders of record.

 

 

 

 

 

 

 

 

137. Prepare the journal entries for the following transactions for Morgan Co.
 

(a)

Morgan Co. purchased 32,000 shares of the total of 100,000 outstanding shares of Gordon Corp. stock for $10 per share plus a $400 commission.

(b)

Gordon Corp.'s total earnings for the period are $80,000.

(c)

Gordon Corp. paid a total of $45,000 in cash dividends.

 

 

 

 

 

 

 

 

 

 

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