Entries for Investment in Bonds, Interest, and Sale of Bonds

Bocelli Co. purchased $60,000 of 7%, 12-year Sanz 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, Bocelli Co. sold $24,000 of the Sanz County bonds at 103 plus $140 accrued interest less a $820 brokerage commission.

Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Assume a 360-day year.

a. Provide the journal entry for the purchase of the bonds on May 11 plus 72 days of accrued interest.

Year 1 May 11		fill in the blank 9223daf92079fab_2	fill in the blank 9223daf92079fab_3
		fill in the blank 9223daf92079fab_5	fill in the blank 9223daf92079fab_6
		fill in the blank 9223daf92079fab_8	fill in the blank 9223daf92079fab_9

b. Provide the journal entry for the semiannual interest on October 1.

Year 1 Oct. 1		fill in the blank 45b05d02a03e049_2	fill in the blank 45b05d02a03e049_3
		fill in the blank 45b05d02a03e049_5	fill in the blank 45b05d02a03e049_6
		fill in the blank 45b05d02a03e049_8	fill in the blank 45b05d02a03e049_9

c. Provide the journal entry for the sale of the bonds on October 31.

Year 1 Oct. 31		fill in the blank bb711bf9e00c05f_2	fill in the blank bb711bf9e00c05f_3
		fill in the blank bb711bf9e00c05f_5	fill in the blank bb711bf9e00c05f_6
		fill in the blank bb711bf9e00c05f_8	fill in the blank bb711bf9e00c05f_9
		fill in the blank bb711bf9e00c05f_11	fill in the blank bb711bf9e00c05f_12

d. Provide the adjusting entry for accrued interest of $420 on December 31, Year 1.

Year 1 Dec. 31		fill in the blank 4c1cb1fc3fd6001_2
			fill in the blank 4c1cb1fc3fd6001_4