Return to Starter 16-11, the Heinz Ltd. investment in Kuzawa Corporation bonds. Journalize the following transactions on

Question:

Return to Starter 16-11, the Heinz Ltd. investment in Kuzawa bonds. Journalize the following transactions on Heinz Ltd.'s books, along with an explanation:
In Starter 16-11
Suppose the company buys $1,000,000 of Kuzawa bonds on January 2, 2017, at a price of 97. The Kuzawa bonds pay cash interest at the annual rate of 6 percent and mature on December 31, 2021.
a. Purchase of the bond investment on January 2, 2017. As Heinz Ltd. expects to hold the investment to it is classified as a longterm investment.
b. Receipt of the annual cash interest on December 31, 2017.
c. Amortization of the discount on December 31, 2017.
d. Collection of the investment's at its date on
December 31, 2021. (Assume that the interest and amortization of discount for 2021 have already been recorded, so you may ignore these entries.)
Corporation
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Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...