On February 1, 2011, Garzon purchased 6% bonds issued by Integal Utilities at a cost of $80,000,

Question:

On February 1, 2011, Garzon purchased 6% bonds issued by Integal Utilities at a cost of $80,000, which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2011, prepare entries to record Garzon’s July 31 receipt of interest and its December 31 year-end interest accrual.