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