On January 1, 2017 Bomita Company purchased at par 6% bonds having a maturity value of $320,000. They are dated January 1, 2017, and mature January 1, 2022 with interest received on January 1, of each year. The bonds are classified in the held-to maturity category.
(a) Prepare the Journal entry of the date of the bond purchase.
(b) Prepare the journal entry to record the interest revenue on December 31, 2017
(c) Prepare the journal entry to record the interest received on January 1, 2016.