Bennett purchased a bond on January 1, 2016, for $150,000. The bond has a face value of $150,000 and matures in 15 years. The bond pays interest on June 30 and December 31 at a 3% annual rate. Bennett plans on holding the investment until maturity.
1. Journalize the 2016 transactions related to Bennett’s bond investment. Explanations are not required.
2. Journalize the transaction related to Bennett’s disposition of the bond at maturity. Determine the date. Explanations are not required.