Question - Chopin Corporation had these transactions pertaining to debt investments:
Jan.1 Purchased 90 10%, $1,000 Martine Co. bonds for $90,000 cash. Interest is payable semiannually on July 1 and January 1. July1 Received semiannual interest on Martine Co. bonds.July1Sold 30 Martine Co. bonds for $32,000.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest at December 31.