I was needing help with questions 4 through 7. I was needing help with questions

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I was needing help with questions 4 through 7.
I was needing help with questions 4 through 7. On September 1, bonds with a par value of $60,000, purchased on February 1, are sold at 99 plus accrued interest. 6. On December 1, semiannual interest is received. 7. On December 31, the fair value of the bonds purchased February 1 and July 1 are 95 and 93, resrectively. (a) Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for 5. On October 1, semiannual interest is received

Explanation / Answer

4) On September 1, bonds with a par value of $60,000, purchased on February 1, are sold at 99 plus accrued interest.

5 On October 1, semiannual interest is received.

6 On December 1, semiannual interest is received

7) On December 31, the fair value of the bonds purchased February 1 and July 1 are 95 and 93 respectively.

Cash [($60,000 X 99%) + ($60,000 X .10 X 5/12)] 61,900 Loss on Sale of Securities 600 Available-for-Sale Securities 60,000 Interest Revenue (5/12 X .10 X $60,000 = $2,500) 2,500

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