On January 1, 2021, Marin Inc., a public company, purchased $470,000 of Pearl Corporation’s five-year, 5% bonds for $491,109 when the market interest rate was 4%. Interest is received semi-annually on July 1 and January 1. Marin’s year end is December 31. Marin intends to hold Pearl’s bonds until January 1, 2026, the date the bonds mature. The bonds’ fair value on December 31, 2021, was $480,000.

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Prepare the entry to record the receipt on maturity of the bonds on January 1, 2026. Assume the entry to record the last interest payment has been recorded. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 (To record maturity of bond investment.) eTextbook and Media Debit Credit How would your answers to parts (a) through (c) change if the bonds were purchased for the purpose of trading? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter 0 for the amounts. Round answers to O decimal places, e.g. 5,276.) Date Account Titles and Explanation Jan. 1 Jul. 1 Dec. 31 Dec. 31 (To record purchase of investment.) (To record collection of interest on bonds.) (To accrue interest revenue.) (To record fair value adjustment.) eTextbook and Media Debit Credit Prepare the entry to record the receipt on maturity of the bonds on January 1, 2026. Assume the entry to record the last interest payment has been recorded. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 (To record maturity of bond investment.) eTextbook and Media Debit Credit How would your answers to parts (a) through (c) change if the bonds were purchased for the purpose of trading? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter 0 for the amounts. Round answers to O decimal places, e.g. 5,276.) Date Account Titles and Explanation Jan. 1 Jul. 1 Dec. 31 Dec. 31 (To record purchase of investment.) (To record collection of interest on bonds.) (To accrue interest revenue.) (To record fair value adjustment.) eTextbook and Media Debit Credit