Problem #$3.$

Zorzi Industries Inc. is an athletic footwear company that began operations on January $1,$ year $1.$ The

following transactions related to debt investments acquired by Zorzi Industries Inc., which has a fiscal

year ending on December $31$:

of $$500.$ The bonds pay interest semiannually on March $1$ and September $1.$

June $1.$ Purchased $$210,000$ of Bailey $4\%10$ year bonds at their face amount plus accrued interest of

$$700.$ The bonds pay interest semiannually on May $1$ and November $1.$

Sept $1.$ Received semiannual interest on the Welch Co$.$ Bonds

Sept $30.$ Sold $$40,000$ of Welch Co$.$ Bonds at $97$ plus accrued interest of $$200.$

Nov. $1.$ Received semiannual interest of the Bailey Bonds.

Dec $31.$ Accrued $$1,200$ interest on the Welch Co$.$ Bonds

Dec $31.$ Accrued $$1,400$ interest on the Bailey Bonds.

Year $2.$

Mar $1.$ Received semiannual interest on the Welch co$.$ bonds

May $1.$ Received semiannual interest on the Bailey bonds,

Instructions:

Journalize the entries to record these transactions