On December 31, 2010, the England Company held 8%, $200, 000 bonds of Marshall Corporation that were purchased at an amount to yield 7%.The bonds were classified as held to maturity and had a carrying value of $208, 640 on December 31, 2010.Interest on the bonds is paid June 30 and December 31.On July 1, 2011, England decided to reclassify the bonds as available for sale.The market price of the bonds at that date was $204, 000.
Required:
Prepare the journal entries required on June 30 and July 1 of 2011 to fully account for the bond investment.

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The Answer of On December 31, 2010, the England Company held 8%, $200, 000 bonds of Marshall Corporation that were purchased at an amount to yield 7%.The bonds were classified as held to maturity and had a carrying value of $208, 640 on December 31, 2010.Interest on the bonds is paid June 30 and December 31.On July 1, 2011, England decided to reclassify the bonds as available for sale.The market price of the bonds at that date was $204, 000.
Required:
Prepare the journal entries required on June 30 and July 1 of 2011 to fully account for the bond investment.

On December 31, 2010, the England Company Held 8%, $200