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.