Question

On August 1, Year 1, Ant Company sold Bee Company $1,500,000 of 10-year, 6% bonds, dated July 1 at 100 plus accrued interest. On March 1, Year 2, Bee sold half of the bonds for $782,500 plus accrued interest. Present entries to record the following transactions:
Bee Company:

a. Purchase of bonds on August 1, Year 1.
b. Receipt of first semiannual interest amount on December 31, Year 1.
c. The sale of the bonds on March 1, Year 2.

Answer 1

Answer:

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Explanation: