Lance Co. purchased $36,000 of 6%, 10-year Bergen County bonds on July 12, 2010
ACCOUNTING by Warren, Reeve and Duchac
Chapter 15 2 Lance Co
EX 15-2 Lance Co. purchased $36,000 of 6%, 10-year Bergen County bonds on July 12, 2010, directly from the county at par value. The bonds pay semiannual interest on May 1and November 1. On December 1, 2010, Lance Co. sold $14,000 of the Bergen County bonds at 102 plus $70 accrued interest, less a $300 brokerage commission.
Provide the journal entries for:
a. the purchase of the bonds on July 12, plus 72 days of accrued interest.
b. semiannual interest on May 1and November 1.
c. sale of the bonds on December 1.
d. adjusting entry for accrued interest of $220on December 31
Dec 1, Loss on Sale of Investments, $20
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