Entries for investment in bonds, interest, and sale of bonds Parilo Company acquired $200,000 of Makofske Co., 5% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold

$80,000 of the bonds for 98.

Journalize the entries to record the following under the cost method:

a. The initial acquisition of the bonds on May 1.

b. The semiannual interest received on November 1.

c. The sale of the bonds on November 1.

d. The accrual of $1,000 interest on December 31, 20Y5.

AppendixLO1