Problemon january 1 talent company purchased as a, Ask an Expert

Accounting

Problem:

On January 1, Talent Company purchased as a short-term investment a $1,000, 8% bond for $1,050. The bond pays interest on January 1 and July 1. The bond is sold on October 1 for $1,200 plus accrued interest. Interest has not been accrued since the last interest payment date.

Required:

Question: What is the entry to record the cash proceeds at the time the bond is sold?

Note: Please provide equation and explain comprehensively and give step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164811

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