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Question
On August 1, Year 1, Bee Company purchased $1,500,000 of Ant Company 10-year, 6% bonds, dated July 1, at 100 plus accrued interest. On March 1, Year 2, Bee sold half of the bonds for $782,500 plus accrued interest. Journalize the following transactions:
| a. | Purchase of bonds on August 1, Year 1. |
| b. | Receipt of first semiannual interest payment on December 31, Year 1. |
| c. | The sale of the bonds on March 1, Year 2. |
Answer
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