Baldwin Inc. is an athletic footware company that began operations on January 1, 2014. The
following transactions relate to debt investments acquired by Baldwin Inc., which has a fiscal
year ending on December 31:
Journalize the entries to record these transactions. For a compound transaction, if an amount box
does not require an entry, leave it blank.
Baldwin Inc. is an athletic footware company that began operations on January 1, 2014. The
following transactions relate to debt investments acquired by Baldwin Inc., which has a fiscal
year ending on December 31: 2014 Mar. 1. Purchased $50,000 of Buncombe Co. 6%, 10-year
bonds at their face amount plus accrued interest of $250. The bonds pay interest semiannually on
February 1 and August 1. 16. Purchased $84,000 of French Broad 5%, 15-year bonds at their
face amount plus accrued interest of $175. The bonds pay interest semiannually on March 1 and
September 1. Aug. 1. Received semiannual Interest on the Buncombe Co. bonds. 31. Sold
$20,000 of Buncombe Co. bonds at 99 plus accrued Interest of $100. Sept. 1. Received
semiannual Interest on the French Broad bonds. Dec. 31. Accrued $750 interest on the
Buncombe Co. bonds. 31. Accrued $1,400 interest on the French Broad bonds. 2015 Feb. 1.
Received semiannual Interest on the Buncombe Co. bonds. Mar. 1. Received semiannual interest
on the French Broad bonds. Journalize the entries to record these transactions. For a compound
transaction, if an amount box does not require an entry, leave it blank.
Solution
March 1st
Invest 50000
Invest REC 250
Cash 500250
March 16
Invest 84000
0Invest REC 175

Cash 84175
April 1st
Cash
Int REC
Intr REV
Aug 31