Jupiter Investments acquired $40,000 Carlisle Corp., 9% bonds at par value on September 1, 2012. The bonds

Question:

Jupiter Investments acquired $40,000 Carlisle Corp., 9% bonds at on September 1, 2012. The bonds pay interest on September 1 and March 1. On March 1, 2013, Jupiter sold $40,000 Carlisle Corp. bonds at 103.
Journalize the entries to record the following:
a. The initial acquisition of the Carlisle Corp. bonds on September 1, 2012.
b. The adjusting entry for four months of accrued interest earned on the Carlisle Corp.
c. The receipt of semiannual interest on March 1, 2013.
d. The sale of $10,000 Carlisle Corp. bonds on March 1, 2013, at 103.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...