Accounting for Debt Securities- Held-to-Maturity

Kurl Company had the following transactuons and adjustments related to a bond investment:

Accounting for Debt Securities-Held-to-Maturity Kurl Company had the following transactions and adjustments related to a bond investment: 2016 Jan. Purchased $600,000 face value of Sphere, Inc.'s 9 percent bonds at 102 plus a brokerage commission of $900. The bonds pay interest on June 30 1 and December 31 and mature in 10 years. Kuri expects to hold the bonds to maturity. June Received the semiannual interest payment on the Sphere bonds and amortized the bond premium for six months, Kurl uses the straight-line 30 method to amortize bond discounts and premiums. 2025 Dec 31 Received the semiannual interest payment on the Sphere bonds and amortized the bond premium for six months. Dec. 31 Received the principal amount in cash on maturity date of the Sphere bonds. Record the transactions and adjustments of Kurl Company using journal entries. General Journal Date Description Debit Credit 1/1/2016 Bond Investment held to maturi 612,900 Cash 612.900 To record purchase of debt securities. 6/30/2016 Cash 27,000 0 Bond investment-held to maturity (Sphere) 0 24570 x Bond interest income 0 2.430 X To record receipt of interest income 12/31/2025 Cash 27,000 Bond investment held to maturity (Sphere) 0 OX Bond interest income 0 To record receipt of interest income. 12/31/2025 Cash 1,140,000 x 0 Bond investment held to mati 0 540,000 x MacBook Air JORDAN Business Course LU Luise - My Suusui IPLIUS 31 Received the semiannual interest payment on the sphere bonds and amortized the bond premium or six months Dec. 31 Received the principal amount in cash on maturity date of the Sphere bonds. Record the transactions and adjustments of Kurl Company using journal entries. General Journal Date Description Debit Credit 1/1/2016 Bond investment held to maturi 612,900 Cash 0 612,900 To record purchase of debt securities. 6/30/2016 Cash 27,000 0 Bond investment-held to maturity (Sphere) 24,570 x Bond interest income 0 2,430 x To record receipt of interest income. 12/31/2025 Cash 27,000 0 Bond investment held to maturity (Sphere) 0 x Bond interest income 0 To record receipt of interest income. 12/31/2025 Cash 1,140,000 X 0 Bond investment held to matu 0 540,000 X To record redemption of bonds at maturity Check You have correctly selected 22 Partially correct Marks for this submission: 11.00/14.00