On September 1, Year 1, Parsons Company purchased $84,000 of 10-year, 7% government bonds at 100 plus accrued interest. The semiannual interest payment dates are June 30 and December 31. Interest computations are done by the month.Required:a. Journalize the entry for the bond purchase.b. Journalize the receipt of interest on December 31 of the first year.c. Journalize the sale of the bonds on February 1 of the second year for $82,000 plus accrued interest.If an amount box does not require an entry, leave it blank.a. Year 1 Sept. 1b. Year 1 Dec. 31c. Year 2 Feb. 1

No Date General journal Debit Credit a Sep 1 Bond investment 84000 Interest receivable…

Answered: Company purch Gone by the mon Required:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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