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Gonzalez Company acquired $204,000 of Walker Co., 7% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November

Gonzalez Company acquired $204,000 of Walker Co., 7% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $57,600 of the bonds for 97.

Journalize entries to record the following in Year 1 (refer to the Chart of Accounts for exact wording of account titles):

a. The initial acquisition of the bonds on May 1.
b. The semiannual interest received on November 1.
c. The sale of the bonds on November 1.
d. The accrual of $1,708 interest on December 31.

Journalize entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

Adjusting Entries

9

10

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