Business
On Jan 1, 2020, a company purchased bonds at a discount for $467,684.20. The bonds have a face value of $500,000 at 8% interest. The bonds mature on Dec, 31, 2023. The market rate was 10%. Interest is paid semiannually on Jun 30 and Dec 31. The fair value of the bonds at 12/31/2020 was $450,000. The company's fiscal year ends Dec 31. Use the Available-for-sale method.1. Record the Journal Entry for the fair-value adjustment on 12/31/20202, On 12/31/2021, the fair value of the bonds was $487,000. Record the Journal Entries needed for 6/30/21 and 12/31/21.3. On 3/1/2022, the company sells the bonds for $470,100. Record the Journal Entries needed for 3/1/22.