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

Parilo Company acquired $132,000 of Makofske Company, 6% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $58,200 of the bonds for 96.

Journalize the entries to record the following under the cost method:

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 $738 interest on December 31, 20Y5.