On January 1, 2017, COYOTE Company purchased 7%, 10-year bonds with a face value of $2,000,000 at $2,100,000. The
interests will be paid annually on December 31 of each year. COYOTE uses the straight-line method to amortize the premium/discount on bonds and the calendar year as its fiscal period. The fair market values of the bonds were $1, 990,000 on 12/31/2017 and $2,040,000 on 12/31/2018. COYOTE sold the bonds for $2,090,000 on 1/1/2019.
Instructions: Presume that COYOTE classified the bond investments as available for sales security.
journal entries for
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