On January 1, 2015, Columbia Ltd. purchased $200,000 of 10%, 10-year bonds at face value (100) with

Question:

On January 1, 2015, Columbia Ltd. purchased $200,000 of 10%, 10-year bonds at (100) with the intention of selling the bonds early next year. Interest is received semi-annually on July 1 and January 1. At December 31, 2015, which is the company's fiscal year end, the bonds were trading in the market at 97 (this means 97% of value). Using the fair value through profit or loss model, prepare the journal entries to record
(a) The purchase of the bonds on January 1,
(b) The receipt of the interest on July 1, and
(c) Any adjusting entries required at December 31?
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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...