On July 1, 2021, Indigo Corporation, a private company, purchased $270,000 of six-year, 6% Star...
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On July 1, 2021, Indigo Corporation, a private company, purchased $270,000 of six-year, 6% Star Corporation bonds for $284,400. The bonds pay interest each June 30. The bonds were purchased to earn interest and the market interest rate at the time of purchase was 5%. The company uses the effective-interest method to amortize any premium or discount on debt security investments. Prepare the required journal entries on July 1 and December 31, 2021, and June 30, 2022
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