On August 1, Year 1, Ant Company sold Bee Company $1,500,000 of 10 year, 6 bonds, dated July 1 at 100 plus accrued interest On March 1, Year 2, Bee sold half of the bonds for $782,500 plus accrued interest Required Present entries to record the following transactions Bee Company (a) Purchase of bonds on August 1, Year 1 (b) Receipt of first semiannual interest amount on December 31, Year 1 (c) The sale of the bonds on March 1, Year 2 CHART OF ACCOUNTSAnt CompanyGeneral Ledger ASSETS 110 Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 151 Supplies 152 Prepaid Insurance 161 Investments Ant Company Bonds 165 Valuation Allowance for Trading Investments 166 Valuation Allowance for Available for Sale Investments 181 Land 191 Equipment 192 Accumulated Depreciation Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries 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 351 Cash Dividends 352 Unrealized Gain (Loss) on Available for Sale Investments 353 Stock Dividends 390 Income Summary REVENUE 410 Sales 611 Interest Revenue 612 Dividend Revenue 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 522 Salaries Expense 531 Advertising Expense 532 Rent Expense 533 Insurance Expense 534 Supplies Expense 561 Depreciation Expense Equipment 590 Miscellaneous Expense 710 Interest Expense 731 Loss on Sale of Investments 741 Unrealized Loss on Trading Investments

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On August 1, Year 1, Ant Company sold Bee Company $1,500,000 of 10-year, 6% bonds, dated July 1 at 100 plus accrued interest. On March

On August 1, Year 1, Ant Company sold Bee Company $1,500,000 of 10-year, 6% bonds, dated July 1 at 100 plus accrued interest. On March 1, Year 2, Bee sold half of the bonds for $782,500 plus accrued interest.

Required:

Present entries to record the following transactions:

Bee Company:

(a)

Purchase of bonds on August 1, Year 1.

(b)

Receipt of first semiannual interest amount on December 31, Year 1.

(c)

The sale of the bonds on March 1, Year 2.

CHART OF ACCOUNTSAnt CompanyGeneral Ledger

	ASSETS
110	Cash
120	Accounts Receivable
121	Allowance for Doubtful Accounts
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
151	Supplies
152	Prepaid Insurance
161	Investments-Ant Company Bonds
165	Valuation Allowance for Trading Investments
166	Valuation Allowance for Available-for-Sale Investments
181	Land
191	Equipment
192	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
231	Interest Payable
241	Salaries 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
351	Cash Dividends
352	Unrealized Gain (Loss) on Available-for-Sale Investments
353	Stock Dividends
390	Income Summary

	REVENUE
410	Sales
611	Interest Revenue
612	Dividend Revenue
631	Gain on Sale of Investments
641	Unrealized Gain on Trading Investments

	EXPENSES
511	Cost of Merchandise Sold
512	Bad Debt Expense
522	Salaries Expense
531	Advertising Expense
532	Rent Expense
533	Insurance Expense
534	Supplies Expense
561	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest Expense
731	Loss on Sale of Investments
741	Unrealized Loss on Trading Investments