Parilo Company acquired $172,200 of Makofske Co., 5% bonds on May 1, 2016, at their face amount.
Interest is paid semiannually on May 1 and November 1.
On November 1, 2016, Parilo Company sold $46,800 of the bonds for 95.
Journalize entries to record the following
May1 Initial acquisition of the bonds
Nov.1 Semi annual interest received 1Sale of the bonds
Dec.31 Accrual of $1,045 interest.