Suppose Elliot Brothers purchases $600,000 of 7.5% annual bonds of Hammond Corporation at face value on January 1, 2018. These bonds pay interest on June 30 and December 31 each year. They mature on December 31,2022. Elliot intends to hold the Hammond bond investment until they maturity.

Requirement 1: Journalize Elliot Brothers transactions related to the bonds for 2018. ( Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Accounts to choose from:

Reasons:

Requirement 2: Journalize the entry required on the Hammond bonds maturity date. (Assume the last payment has already been recorded.) (Record debits first, then credits. Select the explination on the last line of journal entry table.)

Accounts to choose from:

Reasons to choose from :

Requirements 1. Journalize Elliot Brothers's transactions related to the bonds for 2018 2. Journalize the entry required on the Hammond bonds maturity date. (Assume the last interest payment has already been recorded.) Begin by journalizing Elliot Brothers' investment on January 1, 2018 Date 2018 Jan. 1 Accounts and Explanation Debit Credit Next, journalize the receipt of cash interest on June 30, 2018 Date 2018 Jun. 30 Accounts and Explanation Debit Credit Journalize the receipt of cash interest on December 31, 2018 Date Accounts and Explanation Debit Credit Dec. 31 Available-for-Sale Debt Investments Cash Dividend Revenue Fair Value Adjustment-Available-for-Sale 1 Fair Value Adjustment-Equity Investments Fair Value Adjustment-Held-to-Maturity Fair Value Adjustment-Trading Equity Investments Held-to-Maturity Debt Investments Interest Revenue Trading Debt Investments Unrealized Holding Gain-Available-for-Sale Unrealized Holding Gain--Equity Unrealized Holding Gain-Held-to-Maturity e re Unrealized Holding Gain-Trading Disposed of bond at maturity. Purchased investment in bonds. Received cash interest Oon Jouaize the entry roquired on the hammond bonds maturty date (A required on the Hammond bonds maturity date. (Assume the last interest payment has Date 2022 Dec. 31 Accounts and Explanation Debit Credit Available-for-Sale Debt Investments Cash Dividend Revenue Fair Value Adjustment-Available-for-Sale Fair Value Adjustment--Equity Investments Fair Value Adjustment-Held-to-Maturity Fair Value Adjustment-Trading Equity Investments Held-to-Maturity Debt Investments Interest Revenue Trading Debt Investments Unrealized Holding Gain-Available-for-Sale Unrealized Holding Gain-Equity Unrealized Holding Gain- Held-to-Maturity 2. Unrealized Holding Gain-Trading Accounts and Explanation Disposed of bond at maturity. Purchased investment in bonds. Received cash interest