On September 30, 2018, Runtex, Inc., purchased 7.5% bonds of Malloy Corporation at 95 as a long-term, held-to-maturity investment. The maturity value of the bonds will be $16,000 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 Malloy Corp. bonds? Runtex should use the amortized cost method to account for its investment in the Malloy 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 Malloy on September 30, 2018. Journal Entry Date Accounts Debit Credit Sep 30 Cash Held-to-Maturity Investment in Bonds Interest Payable Interest Receivable Interest Revenue Help me sc Trading Securities nore help Clear all Check answer - Requirements 1. What method should Runtex use to account for its investment in the Malloy 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. Print Done