Gillooly Co purchased $108,000 of 6 , 20 year Lumpkin 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, Gillooly Co sold $28,800 of the Lumpkin County bonds at 97 plus $144 accrued interest less a $80 brokerage commission Required Journalize the entries to record the following a The purchase of the bonds on May 11 plus 40 days of accrued interest b Semiannual interest on October 1 c Sale of the bonds on October 31 d Adjusting entry for accrued interest on December 31, Year 1 e The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20 Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations Every line on a journal page is used for debit or credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered Assume a 360 day year Do not round your intermediate calculations and round final answers to the nearest dollar CHART OF ACCOUNTS Gillooly Co General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 161 Investments Lumpkin County Bonds 165 Valuation Allowance for Trading Investments 166 Valuation Allowance for Available for Sale Investments 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 251 Sales Tax Payable EQUITY 311 Common Stock 312 Paid In Capital in Excess of Par Common Stock 321 Preferred Stock 322 Paid In Capital in Excess of Par Preferred Stock 331 Treasury Stock 332 Paid In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Available for Sale Investments 351 Cash Dividends 352 Stock Dividends

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Gillooly Co. purchased $108,000 of 6%, 20-year Lumpkin County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued

Gillooly Co. purchased $108,000 of 6%, 20-year Lumpkin 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, Gillooly Co. sold $28,800 of the Lumpkin County bonds at 97 plus $144 accrued interest less a $80 brokerage commission.

Required:

Journalize the entries to record the following:

a.	The purchase of the bonds on May 11 plus 40 days of accrued interest.*
b.	Semiannual interest on October 1.*
c.	Sale of the bonds on October 31.*
d.	Adjusting entry for accrued interest on December 31, Year 1.*
e.	The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20.*
	Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year. Do not round your intermediate calculations and round final answers to the nearest dollar.*

CHART OF ACCOUNTS

Gillooly Co.

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
121	Allowance for Doubtful Accounts
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
161	Investments-Lumpkin County Bonds
165	Valuation Allowance for Trading Investments
166	Valuation Allowance for Available-for-Sale Investments
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
231	Interest Payable
241	Salaries Payable
251	Sales Tax Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Treasury Stock
332	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
350	Unrealized Gain (Loss) on Available-for-Sale Investments
351	Cash Dividends
352	Stock Dividends