Assume that the Keating Company bonds in Exercise 17-8 are purchased as a long-term investment on March 31, 19X3, to be held to maturity on September 30, 19X7.

\section*{Required}

1. Using the straight-line method of amortizing the discount, journalize all transactions on the bonds for 19X3.

2. How much more interest revenue would the investor record in \(19 \times 3\) for a long-term investment than for a trading investment in these bonds? What accounts for this difference?

3. Show how the investment would be reported on the balance sheet at December 31 .