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Can Someone please Help me with a analysis of the work below. I already did all the calculations, I just need help describing what the numbers mean,

Can Someone please Help me with a analysis of the work below. I already did all the calculations, I just need help describing what the numbers mean, and how they relate to business. Please describe in detail so I may understand, Many thanks! Company name is AJ Corporation.

Journal Entries to Record Purchased of Bonds 

Date Account Debit Credit 

1-Jan-17 Investment in Bonds $300,000

Premium on Bonds $8,373.53

Cash $308,373.53


Interest Amortization Table 

Interest Interest Premium Carrying Amount

Date Received Revenue Amortized of Bonds 

1-Jan-17 $308,373.53

30-Jun-17 $19,500.00 $18,502.41 $997.59 $307,375.94

31-Dec-17 $19,500.00 $18,442.56 $1,057.44 $306,318.50

31-Mar-18 $9,750.00 $9,189.55 $560.45 $305,758.05


Entry to Record the Interest Revenue as on June 30, 2017

Date Account Debit Credit 

30-Jun-17 Cash $19,500.00

Interest Revenue $18,502.41

Premium on Bonds $997.59


Entry to Record Interest Revenue as on December 31, 2017 

Date Account Debit Credit 

31-Dec-17 Cash $19,500.00

Interest Revenue $18,442.56

Premium on Bonds $1,057.44


Entry to Record Interest Receivable on March 31, 2018

Date Account Debit Credit 

31-Mar-18 Interest Receivable $9,750.00

Interest Revenue $9,189.55

Premium on Bonds $560.45



Entry for Sale of Bonds on March 31, 2018 

Date Account Debit Credit 

31-Mar-18 Cash $159,500.00

Investment in Bonds $150,000.00

($300,000/2)

Premium on Bonds $2,879.03

($8,373.53-$997.59-$1,057.44-$560.45)/2

Interest Receivable $4,875.00

($150,000x13%x6/12)

Gain on Sale of Bonds $1,745.97

(To Record the sale of 50% of the value of bonds) 


Entry for Retirement of Bonds on June 30, 2020 

Date Account Debit Credit 

30-Jun-20 Cash $150,000.00

Investment in Bonds $150,000.00

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