On 10-01-16, Bandhan Company purchased 50 of Pfizer Company's $1,000, 3% bonds for $49,200. The Pfizer Company bonds were dated 10-01-16 and will mature on 10-01-19. Bandhan will receive interest every April 1 and October 1. On 08-01-18, Bandhan sold the bonds at 103 plus interest. The Pfizer Company's bonds are Bandhan's only investment in bonds. Bandhan classified the bonds as an available-for-sale investment. Bandhan closes its books every 12-31.

The bonds were trading at the following amounts as of the following dates:

• 12-31-16             98
• 12-31-17             102

Prepare the entries B should make on:

1. 10-01-16.
2. 12-31-16.
3. 04-01-17.
4. 12-31-17.
5. 08-01-18.

And make explanations if needed.

Answer rating: 100% (QA)

a 100116 Bond AC Dr 50000 To cash AC 49200 To discount received 800 bo... View the full answer