Penn Farms is a grower of hybrid seed corn for Bend Genetics Corporation. It has had two exceptionally good years and has elected to invest its excess funds in bonds. The following selected transactions relate to bonds acquired as an investment by Penn Farms, whose fiscal year ends on December 31.

2017

Jan. 1Purchased at par $600,000 of Dover Corporation 10-year, 7% bonds dated January 1, 2017, directly from the issuing corporation.

July 1Received the semiannual interest on the Dover bonds.

Dec. 31 Accrual of interest at year-end on the Dover bonds.

Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2017, to December 31, 2019.

2020

Jan. 1 Received the semiannual interest on the Dover bonds.

Jan. 1 Sold $300,000 of Dover bonds at 110.

July 1 Received the semiannual interest on the Dover bonds.

Dec. 31 Accrual of interest at year-end on the Dover bonds.

Instructions

Journalize the listed transactions for the years 2017 and 20