Gonzalez Company acquired $158,400 of Walker Co., 6% bonds on May 1 at their face amount....

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Accounting

Gonzalez Company acquired $158,400 of Walker Co., 6% bonds onMay 1 at their face amount. Interest is paid semiannually on May 1and November 1. On November 1, Gonzalez Company sold $47,400 of thebonds for 95.
Journalize entries to record the following in Year 1 (refer tothe Chart of Accounts for exact wording of account titles):
a. The initial acquisition of the bonds on May 1.
b. The semiannual interest received on November 1.
c. The sale of the bonds on November 1.
d. The accrual of $1,110 interest on December 31.

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The required journal entries for the given transactions are shown as follows Journal Entries Amounts in No Date Account Titles and Explanations Debit Credit a See Answer

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a.	The initial acquisition of the bonds on May 1.
b.	The semiannual interest received on November 1.
c.	The sale of the bonds on November 1.
d.	The accrual of $1,110 interest on December 31.