20. (5 points) On 01-01-16, B purchased 100, $1,000 3% bonds when similar bonds were paying 3.25%. B incurred and paid $1,250 of bond purchase-related costs. The bonds were dated 01-01-16 and pay interest each January 1 and July 1 and mature on 01-01-21. B classified these bonds as a trading investment. The bonds were trading at the following amounts as of the following dates:

• 03-31-16 98
• 06-30-16 100
• 09-30-16 99

On 08-01-16, B sold one-half of the bonds at 101 plus accrued interest. These bonds are Bs only investment. B closes its books every quarter on 03-31, 06-30, 09-30 and 12-31. Prepare the entries B should make on:

1. 01-01-16.
2. 03-31-16.
3. 06-30-16.
4. 08-01-16.
5. 09-30-16.