Bula Investments acquired $233,600 of Effenstein Corp., 6% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $111,200 of Effenstein Corp. bonds at 105.

Required:

Journalize the entries to record the following:

a.	The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1.*
b.	The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1.*
c.	The receipt of semiannual interest on April 1, 20Y2.*
d.	The sale of $111,200 of Effenstein Corp. bonds on April 1, 20Y2, at 105.*
e.	The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8.*
	*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Do not round your intermediate calculations and round final answers to the nearest dollar.

Journalize entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Do not round your intermediate calculations and round final answers to the nearest dollar.

20Y1:

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1