The following information relates to the debt securities investments of Flint Company$\mathrm{.}1.$ On February $1,$ the company purchased $10\%$ bonds of Gibbons Co$.$ having a par value of $$326,400$ at $100$ plus accrued interest. Interest is payable April $1$ and October $1\mathrm{.}2.$ On April $1,$ semiannual interest is received$\mathrm{.}3.$ On July $1,8\%$ bonds of Sampson, Inc. were purchased. These bonds with a par value of $$186,000$ were purchased at $100$ plus accrued interest. Interest dates are June $1$ and December $1\mathrm{.}4.$ On September $1,$ bonds with a par value of $$64,800,$ purchased on February $1,$ are sold at $99$ plus accrued interest$\mathrm{.}5.$ On October $1,$ semiannual interest is received$\mathrm{.}6.$ On December $1,$ semiannual interest is received$7.$ On December $31,$ the fair value of the bonds purchased February $1$ and July $1$ are $95$ and $93,$ respectively. Please explain every single step. Why is it in the first entry we multiply $4/12$ x $$326,400$ x $10\%$ for interest revenue. Why is it $4$ out of $12?$

Debit

Credit

$(1)$

$(2)$

$(3)$