Glaser Company had the following transactions pertaining to debt securities held as a short-term investment.

Jan. 1 Purchased 60, 8%, $1,000 Dexter Company bonds for $60,000 cash plus brokerage fees of $800. Interest is payable semiannually on July 1 and

January 1. July 1 Received semiannual interest on Dexter Company bonds.

Oct. 1 Sold 30 Dexter Company bonds for $32,000 plus accrued interest less $500 brokerage fees.

Instructions

(a) Journalize the transactions.

(b) Prepare the adjusting entry for the accrual of interest on December 31.