Following are the non-strategic investment transactions of Corona Inc.:

Required

1. For each of the bond investments, prepare an amortization schedule showing only 2020 and 2021.

2. Prepare the entries to record the transactions described above.

3. Show how the investments would be reported on Corona?s December 31, 2020, balance sheet.

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2020 Purchased for $78,141 an 8%, $75,000 bond that matures in 10 years from Hanna Corporation when the market interest rate was 7.4%. Interest is paid semiannually beginning June 30, 2020. 30 Received interest on the Hanna bond. Paid $118,047 for a Trust Inc. bond with a par value of $120,000 and a five-year term. The bond pays interest Jan. June July purchase was 8.2%. Received interest on the Trust bond. Received interest on the Hanna and Trust bonds. 31 Sept. 30 Dec. The fair values of the bonds on this date equalled the fair values.