Gillooly Co. purchased $30,000 of 9%, 12-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 $12,000 of the Lumpkin County bonds at 103 plus $90 accrued interest less a $410 brokerage commission. Journalize the entries to record the following: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Question Content Area a. The purchase of the bonds on May 11 plus 40 days of accrued interest. Year 1 May 11 Investments-Lumpkin County Bonds Investments-Lumpkin County Bonds Interest Receivable Interest Receivable Cash Cash Feedback Area Feedback a. Record the investment at face (debit), interest receivable (debit) for [face amount of bonds x interest rate x (40 days 360 days)], and the cash paid for the sum of cash plus interest receivable. Question Content Area b. Semiannual interest on October 1. Year 1 Oct. 1 Cash Cash Interest Receivable Interest Receivable Interest Revenue Interest Revenue Feedback Area Feedback b. Bond principal x interest rate x half a year = total interest. Record this amount as a debit to Cash. Reduce interest receivable (credit) by the amount calculated in requirement (a) and increase interest revenue (credit) for the difference between the cash and the interest receivable adjustment. Question Content Area c. Sale of the bonds on October 31. Year 1 Oct. 31 - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Feedback Area Feedback c. Calculate the proceeds: 103% x face amount of bonds sold, plus accrued interest, less commission. Debit cash for this amount. Credit investments for the face amount of bonds sold and credit interest revenue for accrued interest amount. To complete the entry, enter the difference between the cash sale amount and the face investment amount + accrued interest as a gain or loss. Question Content Area d. Adjusting entry for accrued interest on December 31, Year 1. Year 1 Dec. 31 - Select - - Select - - Select - - Select - Feedback Area Feedback d. Debit Interest Receivable and credit Interest Revenue for the accrued interest. Remaining bond face after sale x interest rate x (91 days from Oct. 1 to Dec. 31 360 days)]. Question Content Area e. The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20. Year 20 Apr. 1 - Select - - Select - - Select - - Select - Feedback Area Feedback Incorrect Feedback Area Feedback Partially correct