Response to the following problem:
The following selected transactions relate to certain securities acquired by Wildflower Blueprints, Inc., whose fiscal year ends on December 31:
2006
Sept. 1 Purchased $400,000 of Churchill Company 20-year, 9% bonds dated July 1, 2006, directly from the issuing company, for $385,720 plus accrued interest of $6,000.
Dec. 31 Received the semiannual interest on the Churchill Company bonds.
31 Recorded bond discount amortization of $240 on the Churchill Company bonds. The amortization amount was determined by using the straight-line method. (Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2006, to December 31, 2010.)
2011
June 30 Received the semiannual interest on the Churchill Company bonds.
Oct. 31 Sold one-half of the Churchill Company bonds at 961 - 2 plus accrued interest. The broker deducted $400 for commission, etc., remitting the balance. Prior to the sale, $300 of discount on one-half of the bonds was amortized, reducing the carrying amount of those bonds to $194,720.
Dec. 31 Received the semiannual interest on the Churchill Company bonds.
31 Recorded bond discount amortization of $360 on the Churchill Company bonds.
Instructions: Journalize the foregoing transactions.