Laser Vision Co. sells optical supplies to opticians and ophthalmologists. Prepare the entries to record the following selected transactions of Laser Vision Co.:
a. Purchased for cash $450,000 of Pierce Co. 8% bonds at 1011–
2 plus accrued interest of $9,000.
b. Received first semiannual interest.
c. At the end of the first year, amortized $540 of the bond premium.
d. Sold the bonds at 99 plus accrued interest of $3,000. The bonds were carried at $453,750 at the time of the sale.