On January 1, 2024, X Corporation purchased bonds of R Corporation for $52 million 6%, 10-year municipal bonds at par and classified the securities as available for sale. Interest revenue is received on June 30 and December 31. On December 31, 2024, these bonds were valued at $46 million. Nine months later, on October 3, 2025, Jefferson Corporation sold these bonds for $62 million. Instructions: Prepared the journal entries for: a. January 1, 2024 b. June 30, 2024, and December 31, 2024, for Interest Revenue c. adjusting the journal entry on December 31, 2024 (if necessary) d. The journal entries on October 3, 2025, when Jefferson Corporation sold these bonds for $62 million.

On January 1, 2024, X Corporation purchased bonds of R Corporation for $52 million 6%, 10-year municipal bonds at par and classified the securities as available for sale. Interest revenue is received on June 30 and December 31. On December 31, 2024, these bonds were valued at $46 million. Nine months later, on October 3, 2025, Jefferson Corporation sold these bonds for $62 million. Instructions: Prepared the journal entries for: a. January 1, 2024 b. June 30, 2024, and December 31, 2024, for Interest Revenue c. adjusting the journal entry on December 31, 2024 (if necessary) d. The journal entries on October 3, 2025, when Jefferson Corporation sold these bonds for $62 million.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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