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On January Flounder 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. Floungerer 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
List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not
indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. Round answers
