On January 1, 2019, JP Chemical Company purchases $10,000 of 6% bonds in American Airline at...

On January 1, 2019, JP Chemical Company purchases $10,000 of 6% bonds in American Airline at a price of 95. JP Chemical Company intends to hold the bonds until the maturity date on January 1, 2029. The interest dates are January 1 and July 1. JP Chemical Company amortizes any discount or premium using the straight-line method. The fiscal year end of JP Chemical Company is December 31.

Required:

Prepare the journal entries on:

1. January 1, 2019

2. July 1, 2019

3. December 31, 2019

4. January 1, 2020

Explanations are required.

Expert Solution

ekkarill92 answered 1 year ago

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