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On May 1, 2021, Sheffield Corp. purchased $1,530,000 of 12% bonds, interest payable on January...

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Accounting

On May 1, 2021, Sheffield Corp. purchased $1,530,000 of 12% bonds, interest payable on January 1 and July 1, for $1,406,500 plus accrued interest. The bonds mature on January 1, 2027. Amortization is recorded when interest is received by the straight-line method. (Assume bonds are available for sale.)

Prepare the journal entry for May 1, 2021.

The bonds are sold on August 1, 2022 for $1,412,500 plus accrued interest. Prepare all entries required to properly record the sale.

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