On January 1, 2017, Exclusive Company purchases $10,000 of 6% bonds in Smiley Company at a price of 95. Exclusive Company intends to hold the bonds until the maturity date on January 1, 2027. The interest dates are January 1 and July 1. Exclusive Company amortizes any discount or premium using the straight-line method. The fiscal year end of Exclusive Company is December 31.
Required:
Prepare the journal entries on:
1. January 1, 2017
2. July 1, 2017
3. December 31, 2017
4. January 1, 2018
Explanations are not required.

Question

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The Answer of On January 1, 2017, Exclusive Company purchases $10,000 of 6% bonds in Smiley Company at a price of 95. Exclusive Company intends to hold the bonds until the maturity date on January 1, 2027. The interest dates are January 1 and July 1. Exclusive Company amortizes any discount or premium using the straight-line method. The fiscal year end of Exclusive Company is December 31.
Required:
Prepare the journal entries on:
1. January 1, 2017
2. July 1, 2017
3. December 31, 2017
4. January 1, 2018
Explanations are not required.

On January 1, 2017, Exclusive Company Purchases $10,000 of 6