Jacob Company purchased 75 Isaac Company 9%, 10-year, $1,000 bonds on January 1, 2020, for $75,000. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Jacob Company sold 35 of the bonds for $30,500.

Instructions

Prepare the journal entries to record the following transactions:

1/1/20-record the purchase of the bonds

12/31/20-record the accrual of interest

1/1/21-record the receipt of the interest

1/1/21-record the sale of the bonds

12/31/21-record the accrual of interest

SHOW ALL WORK

IF ANSWERED WITH WORK SHOWN I WILL UPVOTE- Thank you!