bond entries mdash investor on may 1 2005 glacier bay co acquired 30 000 of horizon 692456
On May 1, 2005, Glacier Bay Co. acquired $30,000 of Horizon Corp. 8% bonds at 97 plus accrued interest. Interest on bonds is payable semiannually on March 1 and September 1, and bonds mature on September 1, 2008. On May 1, 2006, Glacier Bay Co. sold bonds of $10,000 for 103 plus accrued interest. On July 1, 2007, bonds of $15,000 were exchanged for 2,000 shares of Horizon Corp. common, no par value, quoted on the market on this date at $9. Interest was received on bonds to date of exchange. On September 1, 2008, remaining bonds were redeemed and accrued interest was received.
Instructions: Give journal entries for 2005–2008 to record the preceding transactions on the books for Glacier Bay Co., including any adjustments that are required at the end of each fiscal year ending on December 31. Assume bond premium or discount amortization is by the straight line method. Ignore any potential impact of year to year market value changes on the accounting for the bonds.