Question

The following selected transactions relate to certain securities acquired by Wildflower Blueprints Inc., whose fiscal year ends on December 31:
2007
Sept. 1. Purchased $600,000 of Wilson Company 20-year, 10% bonds dated July 1, 2007, directly from the issuing company, for $578,580 plus accrued interest of $10,000.
Dec. 31. Received the semiannual interest on the Wilson Company bonds.
31. Recorded bond discount amortization of $360 on the Wilson Company bonds.
The amortization amount was determined by using the straight-line method.
(Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2007, to December 31, 2011.)
2012
June 30. Received the semiannual interest on the Wilson Company bonds.
Oct. 31. Sold one-half of the Wilson Company bonds at 97 plus accrued interest. The broker deducted $400 for commission, etc., remitting the balance. Prior to the sale, $450 of discount on one-half of the bonds was amortized, reducing the carrying amount of those bonds to $292,080.
Dec. 31. Received the semiannual interest on the Wilson Company bonds.
31. Recorded bond discount amortization of $540 on the Wilson Company bonds.

Instructions
Journalize the entries to record the foregoing transactions.



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  • CreatedJuly 17, 2012
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