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

question 36

Essay

Trafton Company had the following transactions pertaining to debt securities held as an investment.
Jan. 1 $\quad$ Purchased 60, 8%, $1,000 Hammond Company bonds for $60,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1 $\quad$ Received semiannual interest on Hammond Company bonds.
Sept. 1 $\quad$ Sold 30 Hammond Company bonds for $32,000 plus accrued interest.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.

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Definitions:

Extrinsic Qualities

Characteristics or attributes that are not inherent or essential but are imposed from the outside or by external factors.

Intrinsic Qualities

The inherent characteristics, values, or virtues of a person or thing that are not dependent on external factors.

Intrinsic Motivation

Refers to the internal drive to undertake an activity for its own sake, due to interest, enjoyment, or personal satisfaction.

Quantity Of Performance

A measure of the amount of work completed within a given time frame, often used to gauge productivity.