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Starship Enterprises enters into the following transactions during 2016 and 2017: Transactions: 2016 Jan. 1 Purchased $100,000.00 face value of Northern Lights Inc. bonds at

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

Transactions:
2016
Jan. 1 Purchased $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.
June 30 Received interest on the Northern Lights Inc. bonds.
Dec. 31 Received interest on the Northern Lights Inc. bonds.
2017
Jan. 1 Sold the Northern Lights Inc. bonds for $102,000.00.

Required:

1. Prepare all necessary journal entries on Starships 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?

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