On January 1, 2019, Gatrong Corporation purchased 13%, 5-year Fleming Corporation bonds with a face value of $100,000. It expects to hold these bonds until maturity. The bonds pay interest semiannually on June 30 and December 31. Gatrong paid $111,583, a price that yields a 10% effective annual interest rate.

Required:

Prepare the journal entry of Gatrong to record the purchase of the bonds.

Prepare the journal entry of Gatrong to record the purchase of the bonds on January 1.

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT