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Max's Company invests in the bonds issued by CarmCorp. ...

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Accounting

Max's Company invests in the bonds issued by CarmCorp.
On 1/1/21 Max buys $240,000 of 5% bonds that pay interest on 1/1. They mature in 10 years and yield 6%.
Max pays $222,336. On 12/31/21, the fair value of the bonds is $243,200.
Assuming the bonds are classified as "Trading", prepare the journal entries for 1/1/21, 12/31/21, and 1/1/22.
You may omit (leave out) the closing entries.
Answer: Debits Credits

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