Entries for bond (held-to-maturity) investments

Demopoulos Company acquired $150,000 of Marimar Co., 6% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Demopoulos Company sold $55,000 of the bonds for 98.

Journalize the entries to record the following:

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

a.The initial acquisition of the bonds on May 1

b.The semiannual interest received on November 1

c.The sale of the bonds on November 1.

d.The accrual of $950 interest on December 31.