Parilo Company acquired $142,200 of Makofske Company, 4% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $52,800 of the bonds for 98.

Journalize the entries to record the following under the cost method:

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

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a. The initial acquisition of the bonds on May 1.

20Y5 May 1	CashInterest ReceivableInterest RevenueInvestments-Makofske Co. BondsNotes ReceivableInvestments-Makofske Co. Bonds	Investments-Makofske Co. Bonds	Investments-Makofske Co. Bonds
	CashInterest ReceivableInterest RevenueInvestments-Makofske Co. BondsNotes ReceivableCash	Cash	Cash

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b. The semiannual interest received on November 1.

20Y5 Nov. 1	CashInterest ReceivableInterest RevenueInvestments-Makofske Co. BondsNotes ReceivableCash	Cash	Cash
	CashInterest ReceivableInterest RevenueInvestments-Makofske Co. BondsNotes ReceivableInterest Revenue	Interest Revenue	Interest Revenue

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c. The sale of the bonds on November 1.

20Y5 Nov. 1	CashGain on Sale of InvestmentsInterest ReceivableInvestments-Makofske Co. BondsCash	Cash	Cash
	Gain on Sale of InvestmentsInterest ReceivableLoss on Sale of InvestmentsNotes ReceivableLoss on Sale of Investments	Loss on Sale of Investments	Loss on Sale of Investments
	CashGain on Sale of InvestmentsInterest ReceivableInvestments-Makofske Co. BondsNotes ReceivableInvestments-Makofske Co. Bonds	Investments-Makofske Co. Bonds	Investments-Makofske Co. Bonds

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d. The accrual of $596 interest on December 31, 20Y5.

20Y5 Dec. 31	CashInterest RevenueInterest ReceivableInvestments-Makofske Co. BondsNotes Receivable	- Select -	- Select -
	CashInterest RevenueInterest ReceivableInvestments-Makofske Co. BondsNotes Receivable	- Select -	- Select -