On January Marin Company purchased bonds having a maturity value of $ for $ The bonds provide
the bondholders with a yield. They are dated January and mature January with interest received on January of
each year. Marin Company uses the effectiveinterest method to allocate unamortized discount or premium. The bonds are classified
as availableforsale category. The fair value of the bonds at December of each yearend is as follows.
$ $
$ $
$
a Prepare the journal entry at the date of the bond purchase.
b Prepare the journal entries to record the interest revenue and recognition of fair value for
c Prepare the journal entry to record the recognition of fair value for
