Ingles Company Had the Following Transactions Pertaining to Debt Securities

question 145

Essay

Ingles Company had the following transactions pertaining to debt securities held as an investment.
Jan. 1 Purchased 80, 6%, $1,000 Omega Company bonds for $80,000 cash. Interest is payable annually on January 1.
Dec. 31 Accrued $4,800 annual interest on Omega Company bonds.
Instructions
Journalize the purchase and the receipt of interest. Assume no interest has been accrued.

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Definitions:

Articles of Confederation

The first written constitution of the United States, in force between 1781 and 1789, which outlined a confederal government giving significant power to states.

Protecting Liberties

The act of safeguarding individual freedoms and rights from infringement or restriction, often considered a fundamental aspect of democratic governance.

Communal Ideas

Concepts or ideologies that emphasize the importance of community and collective ownership or participation over individualism.

Principles of Federalism

A political system where power is divided between a central government and various regional governments.