Entries forInvestmentin Bonds, Interest, and Sale of Bonds

Gonzalez Company acquired $187,800 of Walker Co., 8% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $46,800 of the bonds for 97.

Journalize entries to record the following in Year 1:

a.The initial acquisition of the bonds on May 1.

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b.The semiannual interest received on November 1.

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c.The sale of the bonds on November 1.

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d.The accrual of $1,880 interest on December 31.