On September 1, Parsons Company purchased $84,000, 10-year, 7% government bonds at 100 plus accrued interest. The semiannual interest payment dates are June 30 and December 31. Interest calculations are done by the month.

Required:

a. Journalize the entry to record the bond purchase.

b. Journalize the receipt of interest on December 31 of the first year.

c. Journalize the sale of the bonds on February 1 of the second year for $82,000 plus accrued interest.

If an amount box does not require an entry, leave it blank.

a. Year 1 Sept. 1
b. Year 1 Dec. 31
c. Year 2 Feb. 1