Bond (held-to-maturity) investments

Gillooly Co. purchased $192,000 of 8%, 20-year Lumpkin County bonds as a held-to-maturity investment on May 11, Year 1, 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, Year 1, Gillooly Co. sold $48,000 of the Lumpkin County bonds at 97 plus $320 accrued interest.

Journalize the entries to record the following:

If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar.

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a. The purchase of the bonds on May 11 plus 40 days of accrued interest.

Date	Account	Debit	Credit
Year 1 May 11	Bonds PayableCashInterest PayableInterest RevenueInvestments-Lumpkin County BondsCash	Cash	Cash
	Accounts ReceivableCashInterest ReceivableInterest RevenueLoss on Sale of Investments	- Select -	- Select -
	Accounts ReceivableCashInterest ReceivableInterest RevenueInvestments-Lumpkin County Bonds	- Select -	- Select -

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b. Semiannual interest on October 1.

Date	Account	Debit	Credit
Year 1 Oct. 1	Accounts ReceivableCashInterest ReceivableInterest RevenueInvestments-Lumpkin County Bonds	- Select -	- Select -
	Accounts ReceivableCashInterest PayableInterest ReceivableInvestments-Lumpkin County Bonds	- Select -	- Select -
	Accounts ReceivableCashInterest PayableInterest RevenueInvestments-Lumpkin County Bonds	- Select -	- Select -

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c. Sale of the bonds on October 31.

Date	Account	Debit	Credit
Year 1 Oct. 31	Accounts ReceivableCashGain on Sale of InvestmentsInterest RevenueInvestments-Lumpkin County Bonds	- Select -	- Select -
	Accounts PayableAccounts ReceivableGain on Sale of InvestmentsInterest RevenueLoss on Sale of Investments	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashInterest ExpenseInterest RevenueLoss on Sale of Investments	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashInterest ExpenseInvestments-Lumpkin County BondsLoss on Sale of Investments	- Select -	- Select -

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d. Adjusting entry for accrued interest on December 31, Year 1. In computing the accrued interest, use the number of days divided by 360.

Date	Account	Debit	Credit
Year 1 Dec. 31	Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Lumpkin County Bonds	- Select -	- Select -
	Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Lumpkin County Bonds	- Select -	- Select -

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e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20.

Date	Account	Debit	Credit
Year 20 Apr. 1	Bonds PayableCashInterest PayableInterest RevenueInvestments-Lumpkin County Bonds	- Select -	- Select -
	Bonds PayableCashInterest PayableInterest RevenueInvestments-Lumpkin County Bonds	- Select -	- Select -