Current Attempt in Progress

On January $1,2025,$ Carla Vista Company purchased $6\%$ bonds, having a maturity value of $$600,000$ for $$518,458.$ The bonds provide the bondholders with a $8\%$ yield. They are dated January $1,$

$2025,$ and mature January $1,2035,$ with interest receivable June $30$ and December $31$ of each year. Carla Vista Company uses the effective$-$interest method to allocate unamortized discount or

premium. The bonds are classified as available$-$for$-$sale. The fair value of the bonds at December $31$ of each year$-$end is as follows.

$($a$)$ Prepare the journal entry at the date of the bond purchase.

$($b$)$ Prepare the journal entries to record the interest received and recognition of fair value for $2025.$

$($c$)$ Prepare the journal entry to record the recognition of fair value for $2026.$

$($Round answers to $0$ decimal places, e$.$g$.2,525.$ 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. List all debit entries before credit entries.$)$

No$.$

$($a$)$

$($b$)$

$[$

$($To record interest received$)$

$($To record fair value adjustment$)$

$($c$)$