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On 1st Jan, 2015, Apple Co. purchased at par 13% bonds having maturity value 800,000 $. They mature on 1st Jan. 2020, with interest receivable

On 1st Jan, 2015, Apple Co. purchased at par 13% bonds having maturity value 800,000 $. They mature on 1st Jan. 2020, with interest receivable December 31st of each year. Instructions

a. Prepare the journal entry at the date of bond purchase.

b. Prepare the journal entry to record the interest received for 2015.

c. Prepare the journal entry to record the interest received for 2016.

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