Bond Investment Transactions

Starks Products uses the cost method to account for investments in bonds. Journalize the entries to record the following selected bond investment transactions for Starks Products:

If an amount box does not require an entry, leave it blank.

a. Purchased for cash $150,000 of Iceline, Inc., 6% bonds at 100 plus accrued interest of $1,500.

b. Received first semiannual interest payment.

c. Sold $90,000 of the bonds at 102 plus accrued interest of $900.