Robert Company purchased
$100,000 of 8 percent bonds of Evergreen Corp. on January 1, 20x1,
at $92,278. The bonds mature January 1, 20x16, and yield 10%.
Interest is payable each July 1 and January
1. The market value on December 31, 20x1 was $92,500 and all bonds
were sold for $93,300 on January 1, 20x2.
Required: prepare journal
entries on January 1, 20x1, July 1, 20x1, December 31, 20x1 and
January 1, 20x2 assuming the bond investment is classified
as
(1) Held-to-Maturity
(2) Trading
(3) Available-for-Sale
