Trainor Inc

question 1

Essay

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.

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Definitions:

Personal Liability

The legal responsibility of an individual to compensate for harm or damages caused by their actions or negligence.

Common Law Actions

Legal remedies derived from precedents established by court decisions, as opposed to statutes or written laws.

Environmental Damage

Harm caused to the natural environment due to human activities, often necessitating restitution or remediation efforts.

Trespass

A tort consisting of the injury of a person, the entry on the lands of another without permission, or the seizure or damage of goods of another without consent.