question 1: Parilo Company acquired $190,800 of Makofske Co., 5% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 2016, Parilo Company sold $43,800 of the bonds for 97.

Journalize entries to record the following (refer to the Chart of Accounts for exact wording of account titles):

May 1 Initial acquisition of the bonds

Nov. 1 Semiannual interest received 1 Sale of the bonds

Dec. 31 Accrual of $1,225 interest

Journalize entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8		Adjusting Entries
9
10