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Pincher Company purchased 50 Issac Company 12%, 10-year, $1,000 bonds on January 1, 2020, for $50,000. The bonds pay interest semiannually on January 1. On January 1, 2021, after receipt of interest, Pincher Company sold 30 of the bonds for $28,300. Prepare the journal entries to record the transactions described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Respuesta :

Answer: Check attachment

Explanation:

The journal entries to record the transactions described above has been attached.

On 1st, January 2020, debt investment was debited by $50000 and cash was credited by $50000.

On 31st December 2020, interest receivable was debited by $6000 and interest received was credited by $6000.

On 1st January, 2021, Cash was debited by 6000 and interest received was credited by 6000.

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