) Schmidt Corporation purchased $100,000 of 10%, 10-year bonds on Jan payable on July 1, and January 1. The bonds are to be classified as av es. The bonds sell for $88,530 which results in a bond discount of $11,470 %. At December 31, 2017, the fair value and the carrying am 1. (L.O. 1 2017, with interest riti interest rate of 12 the bonds are equal. Instructions: Prepare the entry to record the purchase of the bonds on January 1, 2017. Prepare a schedule of interest revenue and bond discount amortization-e interest method for the dates 1/1/17, 7/1/17, 1/1/18 and 7/1/18. a. c. Prepare the journal entries to record interest revenue on July 1, 2017 and De d. On July 1, 2018, Schmidt Corporation sells the bonds for $88,000. Prepare the 31, 2017. entry recording interest revenue on that date and another entry to record the sa General Journal Date Account Title Debit