Sagal Corporation has excess cash to invest and pays $200,000 to buy 7%,five-year bonds of Richmond Corporation,at face value,on June 30,2016.The bonds pay interest on June 30 and December 31.Sagal intends to hold the bonds to maturity.The bonds are disposed of,at face value,on June 30,2021.
Prepare the journal entry for December 31,2016 (omit the explanation).

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The Answer of Sagal Corporation has excess cash to invest and pays $200,000 to buy 7%,five-year bonds of Richmond Corporation,at face value,on June 30,2016.The bonds pay interest on June 30 and December 31.Sagal intends to hold the bonds to maturity.The bonds are disposed of,at face value,on June 30,2021.
Prepare the journal entry for December 31,2016 (omit the explanation).

Sagal Corporation Has Excess Cash to Invest and Pays $200,000