Prepare Krum Company’s journal entries to record the following transactions involving its short-term investments in available-for-sale debt securities, all of which occurred during the current year.
- On August 1, paid $66,000 cash to purchase Houtte’s 8%, six-month debt securities ($66,000 principal), dated August 1.
- On October 30, received a check from Houtte for 90 days’ interest on the debt securities in transaction a. (Use 360 days in a year. Do not round your intermediate calculations.)

