EmmyLou Company purchased 70 Harris Company 12%, 10-year, 1,000 bonds on January 1, 2011, for 73,000. EmmyLou

Question:

EmmyLou Company purchased 70 Harris Company 12%, 10-year, €1,000 bonds on January 1, 2011, for €73,000. EmmyLou Company also had to pay €500 of broker’s fees. The bonds pay interest semiannually on July 1 and January 1. On January 1, 2012, after receipt of interest, EmmyLou Company sold 40 of the bonds for €40,100.

Instructions
Prepare the journal entries to record the transactions described above.