On February 1, 2013, Garzon purchased 6% bonds issued by PBS Utilities at a cost...
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Accounting
On February 1, 2013, Garzon purchased 6% bonds issued by PBS Utilities at a cost of $40,000, which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2013, prepare entries to record Garzon's July 31 receipt of interest and its December 31 year-end interest accrual. a) Record the interest revenue on July 31, 2013. b) Record the interest accrued on the bonds as of December 31, 2013.
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