Entries for Investments in Bonds, Interest, and Sale of Bonds Torres Investments acquired $233,200 of Murphy Corp., 6% bonds at their face amount on October 1, Year 1. The bonds pay interest on October 1 and April 1. On April 1, Year 2, Torres sold $74,800 of Murphy Corp. bonds at 101. Journalize the entries to record the following: 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 a. The initial acquisition of the Murphy Corp. bonds on October 1, Year 1. Year 1, Oct. 1 Investments-Murphy Corp. Bonds 233.2007 Cash 233,2007 Feedback Check My Work a. Record the investment at par and the cash paid. b. The adjusting entry for three months of accrued interest eared on the Murphy Corp. bonds on December 31, Year 1. Year 1, Dec. 31 Interest Receivable 4,661 X Interest Revenue 4,664 X c. The receipt of semiannual interest on April 1, Year 2 Year 2, Apr. 1 Cash 6,996 Interest Receivable 4,664 X Interest Revenue 2,332 X Feedback Check My Work c. Bond face amount x interest rate x half of year = total interest paid in Cash. Increase Cash for the total interest, decrease the receivable for the accrued three month amount recorded in requirement (b), and increase interest revenue for the remaining two months of the six month period. d. The sale of $74,800 of Murphy Corp. bonds on April 1. Year 2, at 101. Year 2, Apr. 1 Cash v 75,848 Gain on Sale of Investments 748 Investments.Murphy Corp. Bonds 74,800 F