Suppose Jenner and Sons purchases $700,000 of 4.5% annual bonds of McPhee Corporation at face value on January 1, 2016. These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2020. Jenner intends to hold the McPhee bond investment until maturity.
1. Journalize Jenner and Sons’s transactions related to the bonds for 2016.
2. Journalize the entry required on the McPhee bonds maturity date.