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1. On January 1, 2012, Keye Corporation used excess cash to purchase U.S. Treasury bonds for $200,000. The appropriate interest rate is 8%. Interest on
1. On January 1, 2012, Keye Corporation used excess cash to purchase U.S. Treasury bonds for $200,000. The appropriate interest rate is 8%. Interest on these bonds is payable on January 1 and July 1 of each year. Keye's investment is accounted for as held to maturity. The fair value of the Treasury bonds is $210,000 at year end. Required: Prepare the appropriate journal entries to record the transactions for the year, including any year-end adjustments. Show calculations, rounded to the nearest dollar
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