Question: Accounting for bond investments League Up & Co. owns vast amounts of corporate bonds. Suppose League Up buys $700,000 of CoteCorp bonds at face value on January 2, 2016. The CoteCorp bonds pay interest at the annual rate of 8% on June 30 and December 31 and mature on December 31, 2030. League Up intends to hold the investment until maturity.
Requirements: 1. How would the bond investment be classified on League Up's December 31, 2016, balance sheet?
2. Journalize the following on League Up's books:
a. Receipt of final interest payment on December 31, 2030
b. Disposal of the investment at maturity on December 31, 2030