ACC 3003 Intermediate Financial Accounting II Accounting for Investments Question 1: Investment in Debt On January 1, 2019, Mariam Company purchased AED 290,000, 6% bonds. Mariam Company management intend to hold the securities until maturity. The market rate (yield) for similar bonds of risk and maturity are 7%. Mariam Company purchased the bonds for AED 260,000. Interest is payable semiannually on June 30 and December 31. The bonds mature on December 31, 2022. Mariam Company uses the effective-interest method to amortize discount or premium. Required: 1. Prepare the journal entry to record the purchase of bonds on January 1. Assume that the investment is considered as Held to Maturity (HTM). Date Account Dr. Cr