Mercer Investments acquired $120,000 Jericho Corp., 6% bonds at par value as a held- to-maturity investment on September 1, 2015. The bonds pay interest on September 1 and March 1. On March 1, 2016, Mercer sold $40,000 par value Jericho Corp. bonds at 102, after receipt of the interest.
Journalize the entries to record the following:
a. The initial acquisition of the Jericho Corp. bonds on September 1, 2015.
b. The adjusting entry for 121 days of accrued interest earned on the Jericho Corp. bonds on December 31, 2015.
c. The receipt of semiannual interest on March 1, 2016.
d. The sale of $40,000 Jericho Corp. bonds on March 1, 2016, at 102.