Question: Kurtyka Corporation had the following transactions relating to debt investments: Jan. 1, 2017 Purchased 50, $1,000, 10% Spiller Company bonds for $50,000. Interest is payable

Kurtyka Corporation had the following transactions relating to debt investments: Jan. 1, 2017 Purchased 50, $1,000, 10% Spiller Company bonds for $50,000. Interest is payable annually on January 1.

Dec. 31, 2017 Accrued interest on Spiller Company bonds.

Jan. 1, 2018 Received interest from Spiller Company bonds.

Jan. 1, 2018 Sold 30 Spiller Company bonds for $29,000.

(a) Journalize the transactions

(b) prepare the adjusting entry for the accrual of interest on December 31, 2017.

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