B$)$ On April $1,2013,$ Hi and Lois Company purchased $12\%$ bonds having a maturity value of $$1000,000(10000$ bonds$)$ for $$1,057,000$ each plus accrued interest at the purchased date. They are dated January $1,2013,$ and mature January $1,2018,$ with interest receivable Jan. $1$ and July $1,$ of each year.

Instructions

$($a$)$ Prepare the journal entry at the date of the bond purchase.

$($b$)$ Prepare partial Income statement and Balance sheet at Dec$\mathrm{.}31,2013$

$($c$)$ At Sep. $1,2017$ the Hi and Lois Com. Sold the bonds $105$$ for

bond plus accrued interest at the date sold. Record the selling bonds entry