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Question: entries for investment in bonds interest and sale of bonds...

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Entries for Investment in Bonds, Interest, and Sale of Bonds

Gonzalez Company acquired $198,600 of Walker Co., 7% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $55,800 of the bonds for 97.

Journalize entries to record the following in Year 1:

For a compound transaction, if an amount box does not require an entry, leave it blank.

a. The initial acquisition of the bonds on May 1.

b. The semiannual interest received on November 1.

c. The sale of the bonds on November 1.

d. The accrual of $1,666 interest on December 31.

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