Entries for bond (held-to-maturity) investments Gillooly Co. purchased $93,000 of 7%, 12-year Lumpkin County bonds 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 $30,000 of the Lumpkin County bonds at 103 plus $175 accrued interest less a $1,025 brokerage commission. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Assume a 360-day year. a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 Investments-Lumpkin County Bonds 93,000 0 Interest Receivable 723 0 Cash 0 93,723 Feedback Check My Work a. Record the investment at face (debit), interest receivable (debit) for [face amount of bonds x interest rate x (40 days = 360 days)], and the cash paid for the sum of cash plus interest receivable. b. Semiannual interest on October 1. Year 1 Oct. 1 Cash 3,255 0 Interest Receivable 0 723 Interest Revenue 0 2,532 Feedback Check My Work b. Bond principal x interest rate x half a year = total interest. Record this amount as a debit to Cash. Reduce interest receivable (credit) by the amount calculated in requirement (a) and increase interest revenue (credit) for the difference between the cash and the interest receivable adjustment. c. Sale of the bonds on October 31. Year 1 Oct. 31 Cash 30,050 0 Loss on Sale of Investments 125 0 Interest Revenue 0 175 Investments-Lumpkin County Bonds 0 30,000 Cena Condhaal d. Adjusting entry for accrued interest on December 31, Year 1. Year 1 Dec. 31 Interest Receivable 0 Interest Revenue Feedback Check My Work d. Debit Interest Receivable and credit Interest Revenue for the accrued interest. Remaining bond face after sale x interest rat 31 360 days)]. e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20. Year 20 Apr. 1 Cash 63,000 Investments-Lumpkin County Bonds 63,000 Feedback