Lance Co. purchased $36,000 of 6%, 10-year Bergen County bonds on July 12, 2010, directly from the county at par value. The bonds pay semiannual interest on May 1 and
November 1. On December 1, 2010, Lance Co. sold $14,000 of the Bergen County bonds at 102 plus $70 accrued interest, less a $300 brokerage commission.
Provide the journal entries for:
(a) The purchase of the bonds on July 12, plus 72 days of accrued interest.
(b) Semiannual interest on May 1 and November 1.
(c) Sale of the bonds on December 1.
(d) Adjusting entry for accrued interest of $220 on December 31.