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*Exercise 17-3 On January 1, 2017, Blue Company purchased bonds having a maturity value of $250,000, for $270.502.00. The bonds provide the bondholders with a

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*Exercise 17-3 On January 1, 2017, Blue Company purchased bonds having a maturity value of $250,000, for $270.502.00. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2017 and mature January 1, 2022, with interest receivable January 1 of each year. Blue Company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. 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 and enter o for the amounts.) Date Account Titles and Explanation Credit Jan 1, 2017 Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.) Cash Received Interest Revenue Premium Amortized Carrying Amount of Bonds Date 1/1/17 1/1/18 1/1/19 1/1/20 1/1/21 1/1/22 Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017 (Round answers to 2 decimal places, e.g. 2,525.25. 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 and enter o for the amounts.) Debit Date Account Titles and Explanation Credit Dec. 31, 2017 Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018 (Round answers to 2 decimal places, e.g. 2,525.25. 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 and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Dec 31, 2018 Question Attempts: 0 of 3 used

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