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Assume that on September 30, 2014, Wentex Inc. paid 97 for 5.0% bonds of Reynold's corporation as a long-term held to maturity investment. The maturity

Assume that on September 30, 2014, Wentex Inc. paid 97 for 5.0% bonds of Reynold's corporation as a long-term held to maturity investment. The maturity value of the bonds will be $46,000 on September 30, 2019. The bonds pay interest on March 31 and September 30.

1. What method should Wentex use to account for its investment in the bonds? 2. Using the straight-line method of amortizing the discount on bonds, journalize all of Wentex's transactions on the bonds for 2014. 3. Show how Wentex would report everything related to the bond investment on its balance sheet at December 31, 2014.

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