Journalize the entries to record the following selected bond investment transactions for Dip, Inc.
You MUST use the accounts outlined in the Chapter 15 narrated PowerPoint presentations – the
accounts in your textbook aren’t descriptive enough. Journal entry descriptions are not required.
Date Transaction Description
4/1/2022 Purchased for cash, $50,000 of Bump, Inc. 9% bonds at 100 plus accrued interest.
The bonds pay interest on January 31st and July 31st.
7/31/2022 Received the semiannual interest payment.
10/31/2022 Sold $20,000 of bonds at 104 plus accrued interest.
12/31/2022 Accrued interest.
12/31/2022 Marked the debt investments to a market value of $34,000. The debt investments
are classified as available for sale investments.
12/31/2023 Market the debt investments to a market value of $31,000. The debt investments
are classified as available for sale investments.
NOTE: YOUR SOLUTION MUST BE IN HAND-WRITTEN FORM AND INCLUDE
ALL SUPPORTING CALCLUATIONS OR YOU WILL RECEIVE 50% OF THE
POINTS POSSIBLE.