Brook Company purchased 70 Meissner Company 12%, 10-year, $1,000 bonds on January 1, 2012, for $73,000. Brook

Question:

Brook Company purchased 70 Meissner Company 12%, 10-year, $1,000 bonds on January 1, 2012, for $73,000. Brook Company also had to pay $500 of broker’s fees. The bonds pay interest semiannually on July 1 and January 1. On January 1, 2013, after receipt of interest, Brook Company sold 40 of the bonds for $40,100.
Instructions
Prepare the journal entries to record the transactions described above.