Answer and Explanation:
The journal entries are shown below:
On 1 Jul 2021
1.Investment in Bond $200.00
To Cash $170.00
To Discount on bond investment $30.00
(Being the investment in the bonds is recorded)
2. On 31-Dec-21
Cash Dr ($200 × 6÷12 × 6%) $6.00
Discount on bond investment $0.80
To Interest revenue ($170 × 6 ÷ 12 × 8%) $6.80
(Being the interest is recorded)
3. On 02-Jan-22
Cash $150.00
Discount on bond investment $29.20 ($200 - $170 - $0.80)
Loss on sale of investment $20.80
To Investment in Bond $200.00
(Being the sale is recorded)