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Question - On January 1, 2017, Pina Company purchased at par 8% bonds having a maturity value of $270,000. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. The bonds are classified in the held-to-maturity category.
(a) Make the journal entry at the date of the bond purchase.
(b) Make the journal entry to record the interest revenue on December 31, 2017.
(c) Make the journal entry to record the interest received on January 1, 2018.
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