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Help! I have found two different solutions (see below) to the following problem. I need to know which is correct. I am using the solution to check my problem as the info is the same except the face value = $600,000 and the purchase price is $616,747.06 in my problem.

On January 1, 2017, AJ Corporation purchased bonds with a face value of $300,000 for $308,373.53. The bonds are due June 30, 2020, carry a 13% stated interest rate, and were purchased to yield 12% Interests payable semiannually on June 30 and December 31. On March 31 2018, in contemplation of a major acquisition, the company sold one-half the bonds for $159,500 indluding accrued interest, the remainder were held until maturity. Prepare an investment interest income and bond premium amortication schedule using the effective interest method. Prepare the journal entries to record the purchase of the bonds Prepare the journal entries to record each interest payment. Prepare the jourmal entries to record the partial sale of the investment on March 31, 2018, and the refrement of the bond issue on June 30, 2020 Expert Answer O lacob Wiliams answened th Was this answer helipfu?a Record the journal entries for partial sale of investment and retirement of bond issue. General Journal Post Date Accouat title and e Ref. Debit (S) Credit ( 01-Jan-17 Investment in bonds S300,000 S8,374 Premium on bonds Cash S30,874 To record the investment in bonds and 0-Jun-17 Cash Premaum on bonds $998 Interest revene To record interest income 31-Dec-17 Cash Premium on bonds Interest revenme 1,057 $18,443 To record interest income 31-Mar-18 Interest receivable $9,750 Premium on bonds Interest revenue $561 9,19 To record interest receivable for 3 31-Mar-18 Cash $159 Interest receivable Premium on bonds Investment in bonds Gain on sale S4,875 $150 To record the salo 30-Jun-20 Cash 9,75 Premium on bonds $708 S9,042 Interest revenue To record interest income 30-Jun-20 Cash 150 Investment in bonds $150 To record retirement Working Prepare interest amortization schedule under effective interest method. 0 Credit Credit Interestincome receipt (Market Couponrate X rateX Book Amortization premium receivable alue of e balance in 43 Date F 44 01-an-17 45 30-hn-17 $19 46 31-Dec-17 $19. 47 30-hn-18$19.5 48 31-Dec-18 49 30-J-19$19.5 50 31-Dec-19 $19 of bond account account 00, S3 300,000S307.3 998 $7 1.057$6,318$300,000$306,31 $1.121$5,198 S300,000$305.1 $300,000S304 $300,000 $302 $18,165 18 085 128,1 $1,335 ,415$300,000 $301.41 $1415 00, $3 answered this Was this answer helpful? 61 answers 13% Semianual 12% semiannual value-Face Value PV tactor for N pv OuS book alue inG Interest Receipt (Coupon Receipt I Ettective Interest remiumBond Premiam ecevoble 2000 2.Prepare the journal entries to record the purchase of the bonds 1-lan-17 vestment in Bonds 00,000 8,374 The bonds will be reported on balance sheet at face value plus premlum on bonds) re the jounal entries l to record each interest ion Bonds 18,502 est income is r 31-Dec-1 Cash 1,057 31-Dec-1/ Held to maturity are subsequently measured at amortised cost (face value-credit balance in di 306,319 No Entry required 4. Prepare the journal entries to record the partial sale of the imvestrment on March 31, 2018 31-Mar-18 Interest Recpivable on Bonds 9,750 ,190 record Interest receivable for 3 5,758 in Bonds Receivable 191,625 4,875 Cash retevable for Accrued Interest Total Cash Receivable 2,879 190,000 1,746 Ivestment in Honds l entries to record the the retirement of the bond issue on June 30, 2020. lune 30, 2020. Cash 9,750 on Bonds 9,042 income isr June 30, 2020. estment in Bonds 150,000

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