Ingles Company Had the Following Transactions Pertaining to Debt Securities $\quad$

question 289

Essay

Ingles Company had the following transactions pertaining to debt securities held as an investment.
Jan. 1 $\quad$ Purchased 60, 8%, $1,000 Omega Company bonds for $60,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1 $\quad$ Received $2,400 semiannual interest on Omega Company bonds.
Instructions
Journalize the purchase and the receipt of interest. Assume no interest has been accrued.

---

Definitions:

Differential Carrier

The housing that contains the differential gear set in a vehicle, supporting and protecting the gears as they adjust wheel speed during turns.

Crown and Pinion

A gear assembly in a vehicle's differential where the pinion (a small gear) engages with the crown (a larger gear) to allow wheels to rotate at different speeds.

Powerflow

The mechanical flow path that conducts motive power through a system or component. For instance, the powerflow through a transmission in a specific gear ratio would be the sequential routing of the torque flow path through those gears that are actually engaged.

Drive Axle Carrier

The part of a vehicle's drive axle that houses the differential and other components, helping to transmit power from the engine to the wheels.