On May 20, 2015, Haist Inc. purchased $105,000 of 7%, 10-year Asher Corp. bonds at par plus 49 days' accrued interest. The bonds pay interest on April 1 and October 1. On November 1, 2015, Haist Inc. sold $40,000 of the Asher Corp. bonds acquired on May 20 at 98, plus 31 days' accrued interest. On December 31, 2015, 91 days' interest was accrued for the remaining bonds.
1. Journalize the transactions on May 20, October 1, November 1, and December 31.
2. Determine the interest earned by Haist Inc. on Asher Corp. bonds for 2015.