On June 30,2017,Raven Corporation purchased five-year,6% bonds of Cannon Limited as an investment at a price of 96.Raven Corporation plans on holding these bonds for the five-year term when their maturity value will be $50,000.Raven amortizes the premium or discount on bonds using the straight-line method.The bonds pay interest on June 30 and December 31.The market value of these bonds on December 31,2017 is $49,250.
a_Journalize all transactions for the bonds for 2017.
b_Show how the investment would be reported on the balance sheet at December 31,2017.

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The Answer of On June 30,2017,Raven Corporation purchased five-year,6% bonds of Cannon Limited as an investment at a price of 96.Raven Corporation plans on holding these bonds for the five-year term when their maturity value will be $50,000.Raven amortizes the premium or discount on bonds using the straight-line method.The bonds pay interest on June 30 and December 31.The market value of these bonds on December 31,2017 is $49,250.
a_Journalize all transactions for the bonds for 2017.
b_Show how the investment would be reported on the balance sheet at December 31,2017.

On June 30,2017,Raven Corporation Purchased Five-Year,6% Bonds of Cannon Limited