Foren Corporation had the following transactions pertaining to debt investments.

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Foren Corporation had the following transactions pertaining to debt investments.

 

Jan. 1   Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1.

 

July 1   Received semiannual interest on Choate Co. bonds.

 

July 1   Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees.

 

 

Required:

 

(a) Journalize the transactions.

 

(b) Prepare the adjusting entry for the accrual of interest at December 31.

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