=+EX 15-1 Entries for investments in bonds, interest, and sale of bonds obj. 2 Lance Co. purchased $36,000 of 6%, 10-year Bergen County bonds on July 12, 2010, directly from the county at par value. The bonds pay semiannual interest on May 1 and November 1. On December 1, 2010, Lance Co. sold $14,000 of the Bergen County bonds at 102 plus $70 accrued interest, less a $300 brokerage commission.

Provide the journal entries for:

a. the purchase of the bonds on July 12, plus 72 days of accrued interest.

b. semiannual interest on May 1 and November 1.

c. sale of the bonds on December 1.

d. adjusting entry for accrued interest of $220 on December 31.