Question: Odlaw Corporation had the following transactions relating to debt investments: Jan. 1 Purchased 50, $1,000, 12% Clinton Company bonds for $50,000 plus brokers fees of

Odlaw Corporation had the following transactions relating to debt investments:

Jan. 1 Purchased 50, $1,000, 12% Clinton Company bonds for $50,000 plus broker’s fees of $1,500. Interest is payable semiannually on January 1 and July 1

July 1 Received semiannual interest from Clinton Company bonds.

July 1 Sold 30 Clinton Company bonds for $30,000, less $800 broker’s fees.

(a) Journalize the transactions, and

(b) Prepare the adjusting entry for the accrual of interest on December 31.

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