PROBLEM 19-2

KHRISTINE AMBUYAT
 Mature company carried out the following
transactions in bond investments held for trading
during the current year.
Aug. 1 Purchased 5,000, P1,000, 12% bonds of Acme
Company at 104 plus accrued interest of P150,000.
The bonds pay interest semiannually on May 1 and
November 1.

31Purchased 2,000, P1,000, 12% bonds of Avco

Company at 98% plus accrued interest. Semiannual
payment of interest, June 30 and December 31.
Dec. 1 Sold 2,000 of the Acme bonds at 102
plus accrued interest.

31 The following quotations were obtained:

Acme bonds 98
Avco bonds 99
 REQUIREMENTS:
1.Prepare journal entries to
record the transactions.

2. Present the investments on

December 31.
JOURNAL ENTRIES TO RECORD THE
TRANSACTIONS.
INVESTMENTS ON
DECEMBER 31.