As a long-term investment,Ellen Co.paid $700,000 (par value)for Nickel Bank bonds.The bonds pay 5.5% interest semiannually on September 1 and March 1.Prepare the journal entries for the following transactions.Round all values to the nearest dollar.
(1)Purchase on September 1,2014.
(2)Year-end adjusting entry,December 31,2014.
(3)Receipt of semiannual interest payment March 1,2015.
(4)Redemption of the bonds at maturity.
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