Jupiter Investments acquired $40,000 Carlisle Corp., 9% bonds at par value on September 1, 2012. The bonds pay interest on September 1 and March 1. On March 1, 2013, Jupiter sold $40,000 par value Carlisle Corp. bonds at 103.
Journalize the entries to record the following:
a. The initial acquisition of the Carlisle Corp. bonds on September 1, 2012.
b. The adjusting entry for four months of accrued interest earned on the Carlisle Corp.
c. The receipt of semiannual interest on March 1, 2013.
d. The sale of $10,000 Carlisle Corp. bonds on March 1, 2013, at 103.

a. 2012

Sept. 1 Investments-Carlisle Corp. Bonds............ 40,000

Cash.................................................................. 40,000

b. 2012

Dec. 31 Interest Receivable........................................ 1,200

Interest Revenue............................................... 1,200

Accrued interest, $40,000 × 9% × 4/12.

c. 2013

Mar. 1 Cash............................................................... 1,800

Interest Receivable........................................... 1,200

Interest Revenue............................................... 600*

*$40,000 × 9% × 2/12

d. 2013

Mar. 1 Cash........................................................... 10,300*

Gain on Sale of Investments............................. 300

Investments-Carlisle Corp. Bonds................. 10,000

*$10,000 × 103%