Kurtyka Corporation had the following transactions relating to debt investments:
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Jan. 1 |
Purchased 50, $1,000, 12% Nordica Company bonds for $50,000 plus broker’s fees of |
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$1,500. Interest is payable semiannually on January 1 and July 1. |
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July 1 |
Received semiannual interest from Nordica Company bonds. |
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July 1 |
Sold 30 Nordica Company bonds for $30,000, less $800 broker’s fees. |
(a) Journalize the transactions, and (b) prepare the adjusting entry for the accrual of interest on December 31.