E17-2B (L01) (Entries for Held-to-Maturity Securities) On July 1, 2017, Salt Mine Corporation purchased at par 8% bonds having a maturity value of $250,000. The bonds are dated July 1, 2017, and mature July 1, 2022, with interest payable on July 1 each year. The bonds are classified in the held-to-maturity category, and the company does not use reversing entries. Instructions (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entry to record the interest earned and interest received for 2017, (c) Prepare the journal entries to record the interest earned and interest received for 2018. A. Record purchase Held to maturity Security. Cash. 250,000 250,000 B. Record interest earned and interest receive in 2017 Interest receivable. 10,000 Interest revenue. 10,000 C. Record interest earned and interest receive in 2018 July 1, 2018 Cash. 20,000 Interest revenue. 10,000 Interest receivable. why not scash 20,000 10,000 1 Interest Reveme 20.000 December 31, 2018 Interest Receivable. 10,000 Interest revenue. 10,000