Problem 17-2 On January 1, 2017, Blossom Company purchased $350,000, 8% bonds of Aguirre Co. for $322,973. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1 . The bonds mature on January 1, 2022. Blossom Company uses the effective-interest method to amortize discount or premium. On January 1, 2019, Blossom Company sold the bonds foir $324,733 after receiving interest to meet its liquidity needs. Z Your answer is partially correct. Try again. Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Jan. 1, 2017 Interest Revenue Discount Amortization Amount of Bonds Date Cash Received 1/1/20 7/1/20 1/1/21 7/1/21 1/1/22 Total (c) Prepare the journal entries to record the semiannual interest on (1) July 1, 2017, and (2) December 31, 2017. (d) If the fair value of Aguirre bonds is $326,733 on December 31, 2018, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on January 1, 2017, is a debit of $3,212.) (e) Prepare the journal entry to record the sale of the bonds on January 1, 2019 No. Date Account Titles and Explanation Debit Credit (c) (1) July 1, 2017 (2) Dec. 31, 2017 (d) Dec. 31, 2018 (e) Jan. 1, 2019