In auditing the books for Stiller Corporation as of December 31, 2011, before the accounts are closed, you find the following long-term investment account balance:

Instructions:
1. Give the entries that should have been made relative to the investment in bonds, including any adjusting entries that would be made on December 31, the end of the fiscal year. (Assume that bond premium or discount amortization is by the straight-line method and ignore any potential impact of year-to year market value changes on the accounting for the bonds.)
2. Give the journal entries required at the end of 2011 to correct and bring the accounts up to date in view of the entries actually made.

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Account: INVESTMENT IN WILSON CHEMICAL 9% BONDS (MATURITY DATE JUNE 1, 2015) Balance Date Item Debit CredtDb Credit 2011 Jan. 2Bonds, $300,000 par, acquired at 103 plus accrued interst 312.773 MarProceeds from sale of bonds, $150,000 par and 312.773 accrued interest 5900053,773 6.750 147,023 June nterest received Nov Amount received on call of bonds, $80,000 par, at 102 84.600 62.423 3.15059.273 plus accrued interest Dec. Interest received