Exercise 12-11 (Part Level Submission)

On July 2, 2018, Imperial Inc. purchased $520,000 of Acme Corp. 5% bonds at a price to yield a market interest rate of 6%. The bonds pay interest semi-annually on July 1 and January 1, and mature on July 1, 2028. Imperial plans to hold this investment until it matures. At December 31, 2018, which is the year end for both companies, the bonds were trading at 93 (this means 93% of maturity value).

(b) For Imperial, the investor, record. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,250. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) 1. 2 3. 4. the purchase of the bonds on July 2, 2018 the accrual of Interest on December 31, 2018 the receipt of Interest on January 1, 2019, and the receipt of interest on July 1, 2019. Account Titles and Explanation Debit Credit Date 2018 July 2 Dec. 31 2019 Jan. 1 July 1