2.The following information relates to the HTM debt securities investments of Kiran Company during 2016:

a.March 1:The company purchased 8% bonds of Tempe Co. having a par value of $100,000 at 97 plus accrued interest. Interest is payable June 1 and December 1. Maturity date is 12/1/17.

b.June 1:Semiannual interest is received and amortization is updated.

c.Aug 1: 11% bonds of Flagstaff, Inc. were purchased. These bonds with a par value of $50,000 were purchased at 102 plus accrued interest. Interest dates are May 1 and November 1.Maturity date is 11/1/17.

d.November 1: Semiannual interest is received and amortization is updated on Flagstaff bonds.

e.December 1: Semiannual interest is received and amortization is updated on Tempe bonds.

f.December 31: Interest is accrued and amortization is updated on both investments.

Required:

a)Prepare journal entries for all dates. Use straight-line amortization.Do not use separate accounts for discounts and premiums; instead, net them into the Investments account.When computing amortization, round the monthly amortization amounts to the nearest cent.However, journal entry amounts can be rounded to the nearest dollar.