Question: On September 1, 2012, Parsons Company purchased $84,000, 10 year, 7% government bonds at 100 plus accrued interest. The semi-annual interest payment dates are June

On September 1, 2012, Parsons Company purchased $84,000, 10 year, 7% government bonds at 100 plus accrued interest. The semi-annual interest payment dates are June 30 and December 31. Interest calculations are done by the month.

Required:

Journalize the entry to record the bond purchase.

Journalize the receipt of interest on December 31, 2012.

Journalize the February 1, 2013 sale of the bonds for $82,000 plus accrued interest.

For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

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