Crabtree Co. purchased $60,000 of 6%, 15-year Thomas County bonds on June 20, 2014, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on May 1 and November 1. On December 1, 2014, Crabtree Co. sold $15,000 of the Thomas County bonds at 97 plus $75 accrued interest, less a $150 brokerage commission.
Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Assume a 360-day year.
Provide the journal entry for the purchase of the bonds on June 20, plus 50 days of accrued interest.
a. Provide the journal entry for the purchase of the bonds on June 20, plus 50 days of accrued interest.
b. Provide the journal entry for semiannual interest on November 1.
c. Provide the journal entry for the sale of the bonds on December 1.
d. Provide the adjusting entry for accrued interest of $450 on December 31, 2014.