The following information relates to the debt securities investments of Monty Company.

1.On February 1, the company purchased11% bonds of Gibbons Co. having a par value of $304,800at 100 plus accrued interest. Interest is payable April 1 and October 1.2.On April 1, semiannual interest is received.3.On July 1,9% bonds of Sampson, Inc. were purchased. These bonds with a par value of $201,600were purchased at 100 plus accrued interest. Interest dates are June 1 and December 1.4.On September 1, bonds with a par value of $62,400, purchased on February 1, are sold at98plus accrued interest.5.On October 1, semiannual interest is received.6.On December 1, semiannual interest is received.7.On December 31, the fair value of the bonds purchased February 1 and July 1 are94and92, respectively.

...... journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities. (Note to instructor: Some students may debit Interest Receivable at date of purchase instead of Interest Revenue. This procedure is correct, assuming that when the cash is received for the interest, an appropriate credit to Interest Receivable is recorded.)