Cassidy Ltd. purchased $80,000 Stump Inc., 3% bonds at par value on October 1, 2015. Cassidy intends to hold the bonds to maturity in 2025. The bonds pay interest on October 1 and April 1. On April 1, 2016, Cassidy sold $30,000 par value Stump Inc. bonds at 97, after receipt of the interest.
Journalize the entries to record the following:
a. The initial acquisition of the Stump Inc. bonds on October 1, 2015.
b. The adjusting entry for 91 days of accrued interest earned on the Stump Inc. bonds on December 31, 2015.
c. The receipt of semiannual interest on April 1, 2016.
d. The sale of $30,000 Stump Inc. bonds on April 1, 2016, at 97.