Response to the following problem:
Premium Amortization on Bond Investment and Partial Sale of the Investment Using the Effective Interest Method
On January 1, 2007 the Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53. The bonds are due June 30, 2010, carry a 13% stated interest rate, and were purchased to yield 12%. Interest is payable semiannually on June 30 and December 31. On March 31, 2008, in contemplation of a major acquisition, the company sold one-half the bonds for $159,500 including accrued interest; the remainder were held until maturity.
Required
Prepare the journal entries .