Walsh Equipment Company made the following purchases of debt securities during 2012. All are classified as held-to-maturity, and all pay interest semiannually.

Required:
1. Prepare journal entries for the purchases.
2. Show all adjusting entries relating to the bonds on December 31, 2012, assuming that Walsh closes its books on that date and uses the straight-line amortizationmethod.

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Purchase Face Last Interest Payment Date 7/1/2012 10/1/2012 12/1/2012 11/1/2012 Maturity Date Interest Rate, % 97 103 99 105 Corp. A Date 10/15/2012 11/30/2012 12/15/2012 12/31/2012 Amount Cost 1/1/17 4/1/15 6/1/16 5/1/13 S10,000 15,000 10 14 16,000 12