Trafton Company Had the Following Transactions Pertaining to Debt Securities $\quad$

Essay

Trafton Company had the following transactions pertaining to debt securities held as an investment.
Jan. 1 $\quad$ Purchased 60, 8%, $1,000 Hammond Company bonds for $60,000 cash. Interest is payable semiannually on July 1 and January 1.
July 1 $\quad$ Received semiannual interest on Hammond Company bonds.
Sept. 1 $\quad$ Sold 30 Hammond Company bonds for $32,000 plus accrued interest.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest on December 31.