oceaniaa19
Mar 24, 2012, 12:56 PM
Jennifer Stack acquired $50,000 of Oldtown Corp. 9% bonds on July 1, 2010. The bonds were acquired at 92; interest is paid semiannually on March 1 and September 1. The bonds mature September 1, 2017. Stack's books are kept on a calendar-year basis. On February 1, 2013, Stack sold the bonds for 97 plus accrued interest.
Assuming straight-line amortization and no reversing entry at January 1, 2013, give the entry to record the sale of the bonds on February 1. Round your answers to the nearest dollar.
I have done the following journal entries which is not correct:
Cash 50,375
-Bond investment 47,209
-Gain on bond investment 2,500
-Interest revenue 543
-Interest receivable 1,209
I wonder how to calculate it, what is the different between interest revenue and inrterst receivable? Is the interest revenue generated from amortize of the bond discount?
Assuming straight-line amortization and no reversing entry at January 1, 2013, give the entry to record the sale of the bonds on February 1. Round your answers to the nearest dollar.
I have done the following journal entries which is not correct:
Cash 50,375
-Bond investment 47,209
-Gain on bond investment 2,500
-Interest revenue 543
-Interest receivable 1,209
I wonder how to calculate it, what is the different between interest revenue and inrterst receivable? Is the interest revenue generated from amortize of the bond discount?