Questio 1 - Q:15

Suppose Smith and Sons purchases $900,000 of 3.5% annual bonds of Clarkson Corporation at face value on January 1,2024 . These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2028. Smith intends to hold the Clarkson bond investment until maturity. Read the requirements. Requirement 1. Journalize Smith and Sons' transactions related to the bonds for 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Smith and Sons' investment on January 1, 2024. Next, journalize the receipt of cash interest on June 30,2024. Journalize the receipt of cash interest on December 31, 2024. Requirement 2. Journalize the entry required on the Clarkson bonds maturity date. (Assume the last interest p recorded.) (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirements 1. Journalize Smith and Sons' transactions related to the bonds for 2024. 2. Journalize the entry required on the Clarkson bonds maturity date. (Assume the last interest payment has already been recorded.)