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On January 1. 20M, Company purchased 12% bonds, dated January I. 2011, with a lace amount of S20 million The bonds mature in 2020 (10

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On January 1. 20M, Company purchased 12% bonds, dated January I. 2011, with a lace amount of S20 million The bonds mature in 2020 (10 years). For bonds of similar risk and maturity. the market yield is I0degreeo Interest is paid semiannually on June 30 and December 31 Required: Determine the price of the bonds at January 1, 2011 Prepare the journal entry to record the bond purchase by Field on January K 2011 Prepare the journal entry to record interest on June 30, 2011, using the straight-line method Prepare the journal entry to record interest on December 31, 2011, using die straight-line method

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