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On June 30, 2021, Flower Ltd, purchased $300,000 of a six-year, 6% Soil Co bonds at 105. Flower Company purchased the bonds to hold to
On June 30, 2021, Flower Ltd, purchased $300,000 of a six-year, 6% Soil Co bonds at 105. Flower Company purchased the bonds to hold to maturity and earn interest. The market rate on the date of purchased was 5%. Interest is paid semi-annually each June 30 and December 31. The company uses the effective-interest rate method to amortize any premium or discount on debt security investments. Prepare the required journal entries on June 30, 2021, December 31, 2021 and June 30, 2022. Round your answers to the nearest WHOLE dollar
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