The data should be there now, please dont cut off answers Gillooly Co. purchased $162,000 of 5%, 20-year Lumpkin County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Gillooly Co. sold $32,400 of the Lumpkin County bonds at 97 plus $135 accrued interest less a $115 brokerage commission.Required: Journalize the entries to record the following:a.The purchase of the bonds on May 11 plus 40 days of accrued interest.*b.Semiannual interest on October 1.*c.Sale of the bonds on October 31.*d.Adjusting entry for accrued interest on December 31, Year 1.*e.The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20.* *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year. Do not round your intermediate calculations and round final answers to the nearest dollar.CHART OF ACCOUNTS Gillooly Co. General Ledger ASSETS110Cash111Petty Cash120Accounts Receivable121Allowance for Doubtful Accounts131Notes Receivable132Interest Receivable141Merchandise Inventory145Office Supplies146Store Supplies151Prepaid Insurance161Investments-Lumpkin County Bonds165Valuation Allowance for Trading Investments166Valuation Allowance for Available-for-Sale Investments181Land191Store Equipment192Accumulated Depreciation-Store Equipment193Office Equipment194Accumulated Depreciation-Office Equipment LIABILITIES210Accounts Payable221Notes Payable231Interest Payable241Salaries Payable251Sales Tax Payable EQUITY311Common Stock312Paid-In Capital in Excess of Par-Common Stock321Preferred Stock322Paid-In Capital in Excess of Par-Preferred Stock331Treasury Stock332Paid-In Capital from Sale of Treasury Stock340Retained Earnings350Unrealized Gain (Loss) on Available-for-Sale Investments351Cash Dividends352Stock Dividends REVENUE410Sales611Interest Revenue612Dividend Revenue631Gain on Sale of Investments641Unrealized Gain on Trading Investments EXPENSES511Cost of Merchandise Sold512Bad Debt Expense515Credit Card Expense516Cash Short and Over520Salaries Expense531Advertising Expense532Delivery Expense533Repairs Expense534Selling Expenses535Rent Expense536Insurance Expense537Office Supplies Expense538Store Supplies Expense561Depreciation Expense-Store Equipment562Depreciation Expense-Office Equipment590Miscellaneous Expense710Interest Expense731Loss on Sale of Investments741Unrealized Loss on Trading Investments Journalize entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not uselines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entrywhen a credit amount is entered. Assume a 360-day year. Do not round your intermediate calculations and round final answers to the nearestdollar.Year 1:PAGE 10JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONDEBITCREDITASSETS LIABILITIESQUITY1May 11 Investments-Lumpkin County Bonds162,000.002Interest Receivable900.003Cash162,900.004.Oct 1 Cash4,050.00Interest Receivable900.006.Interest Revenue3,150.007Oct. 31 Cash31,448.00Loss on Sale of Investments1,087.00Investments-Lumpkin County Bonds32,400.0010Interest Revenue135.0011Dec. 31Interest Receivable12Interest RevenueYear 20:PAGE 10JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONPOST.DEBITCREDITASSETS LIABILITIESQUITY1

Journal entries are entered in account books to record each and every financial transaction related…

Answered: Gillooly Co. purchased $162,000 of 5%,…

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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The data should be there now, please dont cut off answers

Gillooly Co. purchased $162,000 of 5%, 20-year Lumpkin County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Gillooly Co. sold $32,400 of the Lumpkin County bonds at 97 plus $135 accrued interest less a $115 brokerage commission.

Required:

Journalize the entries to record the following:

a.	The purchase of the bonds on May 11 plus 40 days of accrued interest.*
b.	Semiannual interest on October 1.*
c.	Sale of the bonds on October 31.*
d.	Adjusting entry for accrued interest on December 31, Year 1.*
e.	The receipt of the face value of the remaining bonds at their maturity on April 1, Year 20.*
	Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year. Do not round your intermediate calculations and round final answers to the nearest dollar.*

CHART OF ACCOUNTS
Gillooly Co.
General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
121	Allowance for Doubtful Accounts
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
161	Investments-Lumpkin County Bonds
165	Valuation Allowance for Trading Investments
166	Valuation Allowance for Available-for-Sale Investments
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
231	Interest Payable
241	Salaries Payable
251	Sales Tax Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Treasury Stock
332	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
350	Unrealized Gain (Loss) on Available-for-Sale Investments
351	Cash Dividends
352	Stock Dividends

	REVENUE
410	Sales
611	Interest Revenue
612	Dividend Revenue
631	Gain on Sale of Investments
641	Unrealized Gain on Trading Investments

	EXPENSES
511	Cost of Merchandise Sold
512	Bad Debt Expense
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Repairs Expense
534	Selling Expenses
535	Rent Expense
536	Insurance Expense
537	Office Supplies Expense
538	Store Supplies Expense
561	Depreciation Expense-Store Equipment
562	Depreciation Expense-Office Equipment
590	Miscellaneous Expense
710	Interest Expense
731	Loss on Sale of Investments
741	Unrealized Loss on Trading Investments

Journalize entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use
lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry
when a credit amount is entered. Assume a 360-day year. Do not round your intermediate calculations and round final answers to the nearest
dollar.
Year 1:
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
DEBIT
CREDIT
ASSETS LIABILITIESQUITY
1
May 11 Investments-Lumpkin County Bonds
162,000.00
2
Interest Receivable
900.00
3
Cash
162,900.00
4.
Oct 1 Cash
4,050.00
Interest Receivable
900.00
6.
Interest Revenue
3,150.00
7
Oct. 31 Cash
31,448.00
Loss on Sale of Investments
1,087.00
Investments-Lumpkin County Bonds
32,400.00
10
Interest Revenue
135.00
11
Dec. 31
Interest Receivable
12
Interest Revenue
Year 20:
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST.
DEBIT
CREDIT
ASSETS LIABILITIESQUITY
1

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