On September 30, 2018, Runtex, Inc., purchased 5.5% bonds of Clarkson Corporation at 96 as a long-term, held-to-maturity investment. The maturity value of the bonds will be $24,000 on September 30, 2023. The bonds pay interest on March 31 and September 30. Runtex's fiscal year end is December 31. Read the requirements Requirement 1. What method should Runtex use to account for its investment in the Clarkson Corp. bonds? Runtex should use the amortized cost method to account for its investment in the Clarkson Corp. bonds. Requirement 2. Using the straight-line method of amortizing the discount on bonds, journalize all of Runtex's transactions on the bonds for 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by journalizing the purchase of the bonds in Clarkson on September 30, 2018. Date Debit Credit Journal Entry Accounts 30 Held-to-Maturity Investment in Bonds Cash Requirements Sep 23,040 23,040 1. What method should Runtex use to account for its investment in the Clarkson Corp. bonds? 2. Using the straight-line method of amortizing the discount on bonds, journalize all of Runtex's transactions on the bonds for 2018. 3. Show how Runtex would report everything related to the bond investment on its balance sheet at its year-end, December 31, 2018. Record the entry for the accrual of interest revenue on December 31, 2018. (Round to the nearest whole dollar.) Journal Entry Accounts Date Debit Credit Dec 31 Print Done