On 5/2/20, Anna Company purchased $100,000 of the 9%, 10-yearbonds of Dexter Corporation for $106,247, which provides an 8%return on annual interest payments made every 5/ Anna does notintend to hold the bonds until maturity, but will hold them forlonger than a year. The market value of the bonds at 12/31/20 is$106,100 and at 12/31/21 is $106,000. On 3/1/22, Anna sells thebonds for $105,950. What journal entries will Anna make in 2020 and2021 to appropriately record these transactions and to report thisinvestment on the year-end financial statements and on 3/1/22 torecord the sale of the investment?
