Invested $100,000 in 5-year bonds. The bonds were purchased at par and bear interest at a rate of 8% per

For each of the bonds listed below, record the three requested journal entries.

Dates and descriptions are not required.

Invested $100,000 in 5-year bonds. The bonds were purchased at par and bear interest at a rate of 8% per annum, payable semiannually.

(a)

Prepare the journal entry to record the initial investment.

Debit

Credit

Investment Bond

100,000

Cash

100,000

(b)

Prepare the journal entry that Dorchester would record on each interest date. No journal entries have been made to record monthly interest.

(c)

Prepare the journal entry that Dorchester would record at maturity of the bonds. The journal entry to record the final interest payment was made separately.

Invested $100,000 of face amount of 5-year bonds. The bonds were purchased at 103, and bear interest at a stated rate of 8% per annum, payable semiannually.

(a)

Prepare the journal entry to record the initial investment.

(b)

Prepare the journal entry that Dorchester would record on each interest date. No journal entries have been made to record monthly interest.

(c)

Prepare the journal entry that Dorchester would record at maturity of the bonds. The journal entry to record the final interest payment was made separately.

Invested $100,000 of face amount of 4-year bonds. The bonds were purchased at 98, and bear interest at a stated rate of 8% per annum, payable semiannually.

(a)

Prepare the journal entry to record the initial investment.

(b)

Prepare the journal entry that Dorchester would record on each interest date. No journal entries have been made to record monthly interest.

(c)

Prepare the journal entry that Dorchester would record at maturity of the bonds. The journal entry to record the final interest payment was made separately.