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  3. 6. sternforth inc. purchased a 10-year bond on jul

6. Sternforth Inc. purchased a 10-year bond on July 31, 2017 for its face value,...

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Accounting

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6. Sternforth Inc. purchased a 10-year bond on July 31, 2017 for its face value, $1,000,000, and classified it as a held to maturity security. The market value of the bond was $990,000 at year end, and it paid interest of $30,000 on Dec. 31, 2018. Nothing happened in 2018 other than interest payments, as Sternforth Inc. intends to hold the bond until it matures in 2027. Show the journal entries for July 31, 2017 and Dec. 31, 2018

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