On January 1,2019,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 1,2029,and has the ability to do so.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 1,2019
2.July 1,2019
3.December 31,2019
4.January 1,2020
Explanations are not required.
Correct Answer:
Verified
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