Quagle Company had the following transactions pertaining to debt investments.
2017
Jan. 1 Purchased 40 8% $1000 Steve Company bonds for $40000 cash. Interest is payable annually on January 1.
Dec. 31 Accrued annual interest on Steve Company bonds.
2018
Jan. 1 Received interest from Steve Company bonds.
Jan. 1 Sold 24 Steve Company bonds for $26000.
Instructions
Journalize the transactions.

Debt Investments

Investments in bonds or other debt securities where the investor lends money to an entity in exchange for interest payments and the return of principal.

Accrued Annual Interest

Interest that has been incurred but not yet paid over a year, representing a liability for the borrower.

Sold Bonds

The action of issuing bonds to investors, raising capital by incurring long-term debt.