Problem:
On January 1, Talent Company purchased as a short-term investment a $1,000, 8% bond for $1,050. The bond pays interest on January 1 and July 1. The bond is sold on October 1 for $1,200 plus accrued interest. Interest has not been accrued since the last interest payment date.
Required:
Question: What is the entry to record the cash proceeds at the time the bond is sold?
Note: Please provide equation and explain comprehensively and give step by step solution.