Question: - Your answer is partially correct. On January 1, 2020, Indigo Company purchased at par 6% bonds having a maturity value of $410.000. They

- Your answer is partially correct. On January 1, 2020, Indigo Company

- Your answer is partially correct. On January 1, 2020, Indigo Company purchased at par 6% bonds having a maturity value of $410.000. They are dated January 1. 2020, and mature January 1, 2025, with interest received on January 1 of each year. The bonds are classified in the held-to-maturity category. (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entry to record the interest revenue on December 31, 2020. (c) Prepare the journal entry to record the interest received on January 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation (a) Debt Investments Debit Credit 300000 Cash (b) Interest Receivable 18000 Interest Revenue (c) Cash 18000 Interest Receivable 300000 18000 18000

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