On May 1 of the current year, a company paid $200,000 to purchase 7%, 10-yearbonds with a par value of $200,000; interest is paid semiannually on May 1 andNovember 1. The company intends to hold the bonds until they mature. Prepare thejournal entries to record (1) the bond purchase, (2) the receipt of the first semiannualinterest payment on November 1 of the current year, (3) the accrual of interest foryear-end December 31, and (4) the receipt of the second semiannual payment onMay 1.