Bocelli Co. purchased $120,000 of 6%, 20-year Sanz County bonds on May 11, 2016, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, 2016, Bocelli Co. sold $30,000 of the Sanz County bonds at 99 plus $150 accrued interest, less a $100 brokerage commission.

Provide journal entries for the following (refer to the Chart of Accounts for exact wording of account titles):

May	11	Purchase of the bonds, plus 40 days of accrued interest; assume a 360-day year.
Oct.	1	Semiannual interest
	31	Sale of the bonds
Dec.	31	Adjusting entry for accrued interest of $1,365