Prepare journal entries to record the following transactions involving the short
ID: 2423498 • Letter: P
Question
Prepare journal entries to record the following transactions involving the short-term securities investments of Natura Co., all of which occurred during year 2015.
On June 15, paid $122,000 cash to purchase Remedy’s 90-day short-term debt securities ($122,000 principal), dated June 15, that pay 9% interest (categorized as held-to-maturity securities).
On September 16, received a check from Remedy in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. (Use 360 days in a year. Do not round your intermediate calculations.)
Journal Entry Worksheet
On June 15, paid $122,000 cash to purchase Remedy’s 90-day short-term debt securities ($122,000 principal), dated June 15, that pay 9% interest (categorized as held-to-maturity securities).
On September 16, received a check from Remedy in payment of the principal and 90 days' interest on the debt securities purchased in transaction a.
*Enter debits before credits
Journal Entry Worksheet
On June 15, paid $122,000 cash to purchase Remedy’s 90-day short-term debt securities ($122,000 principal), dated June 15, that pay 9% interest (categorized as held-to-maturity securities).
On September 16, received a check from Remedy in payment of the principal and 90 days' interest on the debt securities purchased in transaction a.
*Enter debits before credits
Prepare journal entries to record the following transactions involving the short-term securities investments of Natura Co., all of which occurred during year 2015.
Explanation / Answer
Transaction Date Particulars Debit $ Credit $ 15-Jun 9% Short Term Securities A/c DR 122000 To Cash A/c 122000 16-Sep Cash A/c 124745 To 9% Short Term Securities A/c 122000 To Interest Received on Securities A/c 2745 $ 122,000 X 9% X 90 days / 360