On May 1, 2010, Starmaker Machinery, Inc., purchased $60,000 of 10-year, 5% government bonds at 103, including

Question:

On May 1, 2010, Starmaker Machinery, Inc., purchased $60,000 of 10-year, 5% government bonds at 103, including the brokerage commission. The interest is received semiannually on May 1 and November 1.
(a) Journalize the entry to record the May 1, 2010, bond purchase.
(b) Journalize the semiannual interest received on November 1, 2010.
(c) Journalize the accrued interest adjustment on December 31, 2010.
(d) Journalize the premium amortization adjustment on December 31, 2010.
(e) Journalize the receipt of the face amount of the bonds on the bond date, May 1, 2020.

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...