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On July 1, 2010, Stine Co. purchased $100,000 of 8% bonds for $97687.4 plus accrued interest as an available-for-sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2016.
Instructions(a) Prepare the journal entry on July 1, 2010.(b) The bonds are sold on October 1, 2011 at 105 plus accrued interest. Amortization was recorded by the effective interest rate method. Prepare all entries required to properly record the sale.
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