2 Points 2 Presented below is information taken from a bond amortization schedule with related fair values provided. 3 These bonds are managed to profit from changes in market interest rates. 31/12/17 31/12/18 31/12/19 Amortized cost 107,500 113,628 119,877 Fair Value 109,650 111,355 119,877 7 Required: 8 1. Indicate whether the bonds were purchased at a discount or premium. Explain why you think so. 9 2. Prepare the adjusting entry to record the bonds at fair value at December 31, 2017 10 The Fair Value Adjustment has a debit balance of $1,000 prior to adjustment. 11 3. Prepare the adjusting entry to record the bonds at fair value at December 31, 2018. 1. Your name and Question 1 Question Question Ready