Accounting for Debt SecuritiesTrading Gressens Company had the following transactions and adjustments related to a bond investment: 2016 Oct. Purchased $500,000 face value of Skyline, Inc.'s 7 percent bonds at 97 plus a brokerage commission of $1,000. The bonds pay interest on September 30 and March 31 and mature in 20 years. Gressens 1 expects to sell the bonds in the near future. Dec. 31 Made the adjusting entry to record interest earned on investment in the Skyline bonds. Dec. 31 Made the adjusting entry to record the current fair value of the Skyline bonds. At December 31, the market value of the Skyline bonds was $490,000. 2017 Mar. 31 Received the semiannual interest payment on investment in the Skyline bonds. Apr. 1 Sold the Skyline bond investment for $492,300 cash. Record the transactions and adjustments of the Gressens Company using journal entries. General Journal Date Description Debit Credit 10/1/2016 To record purchase of debt securities. 12/31/2016 To record interest earned on debt securities. 12/31/2016 To adjust securities to year-end fair value. 3/31/2017 Bond interest income To record receipt of interest on debt securities. 4/1/2017 Bond investment-trading (Skyline) To record sale of debt securities