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11 - Recording Bond Transactions-Investor (Estimated 10 points) Tempest Company purchased S % of the Mania bonds described in Problem # 10 on page 5

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11 - Recording Bond Transactions-Investor (Estimated 10 points) Tempest Company purchased S % of the Mania bonds described in Problem # 10 on page 5 as an investment on January 1, 2017 when they were issued. Tempest has the intent and ability to hold the bond investment until maturity. You may round all amounts to the nearest S1 if necessary 1. Determi 2017 ne the price Tempest paid for its purchase of sons of the Mania bonds on January 1, 2. Prepare the journal entry to record the bond purchase by Tempest on January 1, 2017. 3. Prepare the journal entry to record interest on June 30, 2017, using the effective interest method 4. Prepare the journal entry to record interest on December 31, 2017, using the effective interest method. Prepare the journal entry to record the maturity of the bonds in 2026 (assume that the final interest payment has already been recorded)

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