question bocelli co purchased 135 000 of 6 20 year sanz county bonds on may 11 2016 4286816

Question

Bocelli Co. purchased $135,000 of 6%, 20-year Sanz County bonds on May 11, 2016, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, 2016, Bocelli Co. sold $28,800 of the Sanz County bonds at 96 plus $144 accrued interest, less a $85 brokerage commission. Provide journal entries for the following (refer to the Chart of Accounts for exact wording of account titles):

May 11 Purchase of the bonds, plus 40 days of accrued interest; assume a 360-day year.

Oct. 1 Semiannual interest 31 Sale of the bonds

Dec. 31 Adjusting entry for accrued interest of $1,593

Bocelli Co. purchased $135,000 of 6%, 20-year Sanz County bonds on May 11, 2016, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, 2016, Bocelli Co. sold $28,800 of the Sanz County bonds at 96 plus $144 accrued interest, less a $85 brokerage commission.

Provide journal entries for the following (refer to the Chart of Accounts for exact wording of account titles):

Provide journal entries for the transactions. Refer to the Chart of Accounts for exact wording of account titles.

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May	11	Purchase of the bonds, plus 40 days of accrued interest; assume a 360-day year.
Oct.	1	Semiannual interest
	31	Sale of the bonds
Dec.	31	Adjusting entry for accrued interest of $1,593