Cheese Farms is a grower of hybrid seed corn for Steenbergen Genetics Limited. It has had two

Question:

Cheese Farms is a grower of hybrid seed corn for Steenbergen Genetics Limited. It has had two exceptionally good years and has elected to invest its excess funds in bonds. The selected transactions, shown below, relate to bonds acquired as an investment by Cheese Farms, whose fiscal year ends on December 31.
2017
Jan. 1 Purchased at £400,000 of Stombaugh 10-year, 6% bonds dated January 1, 2017, directly from the issuing 31 Accrual of interest at year-end on the Stombaugh bonds. Interest is paid on January 1 of each year.
(Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2017, to December 31, 2019.)
2020
Jan. 1 Received the annual interest on the Stombaugh bonds.
Jan. 1 Sold £240,000 of Stombaugh bonds at 112.
Dec. 31 Accrual of interest at year-end on the Stombaugh bonds.
Instructions
(a) Journalize the listed transactions for the years 2017 and 2020.
(b) Show the statement of financial position presentation of the bonds and interest receivable at December 31, 2017. Assume the investments are considered long-term.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...