Question
Bocelli Co. purchased $57,000 of 8%, 10-year Sanz County bonds on May 11, Year 1, directly from the country, at their face amount plus accrued
Bocelli Co. purchased $57,000 of 8%, 10-year Sanz County bonds on May 11, Year 1, directly from the country, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Bocelli Co. sold $24,000 of the Sanz County bonds at 103 plus $160 accrued interest less a $805 brokerage commission.
A) Provide the journal entry for the purchase of the bonds on May 11 plus 72 days of accrued interest.
B) Provide the journal entry for the semiannual interest on October 1.
C) Provide the journal entry for the sale of the bonds on October 31.
D) Provide the adjusting entry for accrued interest of $440 on December 31, Year 1.
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