Trainor Inc., a public company, had the following transactions pertaining to debt investments held as trading investments:
Jan 1 Purchased 60, 8%, $1,000 Terry Corp. bonds for $60,000. Interest is payable semi-annually on July 1 and January 1. On December 31 the bonds were trading at 101.
Jul 1 Received semi-annual interest on Terry Corp. bonds.
1 Sold 30 Terry Corp. bonds for $32,000.
Instructions
a. Journalize the transactions.
b. Prepare the required adjusting journal entries at December 31.

Question

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The Answer of Trainor Inc., a public company, had the following transactions pertaining to debt investments held as trading investments:
Jan 1 Purchased 60, 8%, $1,000 Terry Corp. bonds for $60,000. Interest is payable semi-annually on July 1 and January 1. On December 31 the bonds were trading at 101.
Jul 1 Received semi-annual interest on Terry Corp. bonds.
1 Sold 30 Terry Corp. bonds for $32,000.
Instructions
a. Journalize the transactions.
b. Prepare the required adjusting journal entries at December 31.