Fleet Inc. is an athletic footware company that began operations on January 1, 2015. Fleet Inc. uses the effective interest method of amortizing discounts and premiums. The following transactions relate to held-to-maturity investments acquired by Fleet Inc., which has a fiscal year ending on December 31:
2015
Mar. 1. Purchased $36,000 of Madison Co. 5%, 10-year bonds at 95 plus accrued interest. The bonds pay interest semiannually on February 1 and August 1. The market interest rate was 5.6%.
Apr. 16. Purchased $45,000 of Westville 4%, 15-year bonds at 102.5 plus accrued interest. The bonds pay interest semiannually on April 1 and October 1. The market rate was 3.7%.
Aug. 1. Received semiannual interest on the Madison Co. bonds.
Sept. 1. Sold $12,000 of Madison Co. bonds at 98 plus accrued interest.
Oct. 1. Received semiannual interest on the Westville bonds.
31. Accrued interest on the Madison Co. bonds. Accrued interest on the Westville bonds.
2016
Feb. 1. Received semiannual interest on the Madison Co. bonds.
Apr.1. Received semiannual interest on the Westville bonds.
Instructions
Journalize the entries to record these transactions.