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Entries for Investment in Bonds, Interest, and Sale of Bonds Gonzalez Company acquired $192,600 of...

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Entries for Investment in Bonds, Interest, and Sale of Bonds Gonzalez Company acquired $192,600 of Walker Co., 4% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $54,600 of the bonds for 99 . Journalize entries to record the following in Year 1: For a compound transaction, if an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds on May 1. May 1 Feedrack T. Check My Work a. Record the investment at par and the cash paid. b. The semiannual interest recelved on November 2. giv. 1 c. The sale of the bonds on Novamhar 1 Feedback T Check My Wark c. Calculate the proceeds: 99% face amount of bonds, Debit Cash for this amount. Credit Investment for the face amount of the bonds. Complete the entry by recording any gain or loss as the difference between the sale amount and the face amount. d. The accrual of $920 interest on December 31 . Dec. 31

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