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On July 1, 2015 they paid cash for a municipal bond from the State of Wisconsin...

On July 1, 2015 they paid cash for a municipal bond from the State of Wisconsin for $100,000. The bond matures in 10 years and pays 10% interest semiannually. Lila Corp purchased the bond to set aside the money for an expansion project that is planned 10 years from now. As such, they expect to liquidate the investment only when they are ready to initiate the project in 2025. Propose the journal entries at each of the dates below (if a JE is necessary.) If a journal entry is not necessary, explain why not. Show your work. Responses to short answer questions should be between 2-5 sentences.

July 1:

December 31:

Would a journal entry be necessary if the investment had a market value of $101,000 as of Dec 31?

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