1. Entries for The balance sheet caption used to report temporary or long-term investments in stocks or bonds held as either trading, available-for-sale, held-to-maturity, or equity method securities.Investment in Bonds, Interest, and Sale of Bonds

   Gonzalez Company acquired $201,600 of Walker Co., 6% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $55,800 of the bonds for 98.

   Journalize entries to record the following in Year 1:

   For a compound transaction, if an amount box does not require an entry, leave it blank.

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

   May 1	Cash Interest Receivable Interest Revenue Investments-Walker Co. Bonds Notes Receivable
   	Cash Interest Receivable Interest Revenue Investments-Walker Co. Bonds Notes Receivable

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   b. The semiannual interest received on November 1.

   Nov. 1	Cash Interest Receivable Interest Revenue Investments-Walker Co. Bonds Notes Receivable
   	Cash Interest Receivable Interest Revenue Investments-Walker Co. Bonds Notes Receivable

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   c. The sale of the bonds on November 1.

   Nov. 1	Cash Gain on Sale of Investments Interest Receivable Interest Revenue Investments-Walker Co. Bonds
   	Gain on Sale of Investments Interest Receivable Interest Revenue Loss on Sale of Investments Notes Receivable
   	Cash Gain on Sale of Investments Interest Receivable Investments-Walker Co. Bonds Notes Receivable

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   d. The accrual of $1,458 interest on December 31.

   Dec. 31	Cash Interest Receivable Interest Revenue Investments-Walker Co. Bonds Notes Receivable
   	Cash Interest Receivable Interest Revenue Investments-Walker Co. Bonds Notes Receivable