Exercise 17-1 Classify the following investments. Each case is independent of the other. Investm (a) A bond that will mature in 4 years was bought 1 month ago when the price dropped. As soon as the value increases, which is expected next month, it will be sold, (b) 10% of the outstanding stock of Farm-Co was purchased. The company is planning on eventually getting a total of 30% of its outstanding stock (c) Bonds were purchased in December of this year. The bonds are expected to be sold in January of next year. (d) Bonds that will mature in 5 years are purchased. The company would like to hold them until they mature, but money has been tight recently and they may need to be sold. (e) Preferred stock was purchased for its constant dividend. The company is planning to hold the preferred stock for a long time. (1) A bond that matures in 10 years was purchased. The company is investing money set aside for an expansion project planned 10 years from now LINK TO TEXT LINK TO TEXT Exercise 17-2 On January 1, 2017, Sandhil Company purchased at par 6% bonds having a maturity value of $350,000. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. The bonds are dassified in the held-to- maturity category. (a) Prepare the journal entry at the date of the bond purchase (b) Prepare the journal entry to record the interest revenue on December 31, 2017 (c) Prepare the journal entry to record the interest received on January 1, 2018 (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles an enter for the amounts) No. Account Titles and Explanation Debit Credit