Starship Enterprises enters into the following transactions during 2016 and 2017:

Transactions:2016Jan.1Purchased $100,000.00 face value of Northern Lights Inc. bonds at face value. The newly issued bonds have an interest rate of 4.00% paid semiannually on June 30 and December 31. The bonds mature in five years.June30Received interest on the Northern Lights Inc. bonds.Dec.31Received interest on the Northern Lights Inc. bonds.2017Jan.1Sold the Northern Lights Inc. bonds for $102,000.00.Required:

1.Prepare all necessary journal entries on Starship's records to account for its investment in the Northern Lights bonds.2.Why was Starship able to sell its Northern Lights bonds for $102,000.00?

1. Prepare all necessary journal entries with the impact on the financial statements on Starship's records to account for its investment in the Northern Lights bonds on journal pages 2016 and 2017. Assume a 360 day year.

General Journal Instructions