Le Tourneau Company Had the Following Transactions Pertaining to Debt $\quad$

Essay

Le Tourneau Company had the following transactions pertaining to debt securities held as a I short - term investment.
Jan. 1 $\quad$ Purchased 90, 6%, $1,000 Lido Company bonds for $90,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1 $\quad$ Received semiannual interest on Lido Company bonds.
Oct. 1 $\quad$ Sold 45 Lido Company bonds for $46,400 plus accrued interest.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.