Required: Prepare the appropriate journal entries to record the transactions for the year, 20X1, including any year-end adjustments. Show calculations, rounded to the nearest dollar.
On January 1, 20X1, Fox Corporation used excess cash to purchase U.S. Treasury bonds for $100,000. The bonds were purchased at face value. The appropriate interest is 6%. Interest on these bonds is payable on January 1 and July 1 of each year. Fox's investment is accounted for as held to maturity. The fair value of the Treasury bonds is $102,000 at year-end.