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Journalize the entry to record the bond purchase

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Question - On September 1, Parsons Company purchased $84,000, 10-year, 7% government bonds at 100 plus accrued interest. The semiannual interest payment dates are June 30 and December 31. Interest calculations are done by the month.

Required -

a. Journalize the entry to record the bond purchase.

b. Journalize the receipt of interest on December 31 of the first year.

c. Journalize the sale of the bonds on February 1 of the second year for $82,000 plus accrued interest.

Reference no: EM132563271

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