Joey Co$.$ purchased bonds of $$80$ Million as a long$-$term investment. The bonds have a stated rate of $8\%$ and are dated January $1,2024,$ which is also the purchase date. Management classifies this investment as available$-$for$-$sale. The bonds were priced to yield $10\%$ and sold for $$66$ million. Interest is received semiannually on June $30$ and December $31.$ Due to economic factors, the fair value of the bonds at December $31,2024$ was $$70$ million. Joey Co$.$ used effective interest to amortize the investment.

Required:

$1.$ Prepare the entry to record Joey Co$$s investment on January $1,2024.$

$2.$ Prepare the entry to record Joey Co$$s interest on June $30,2024.$

$3.$ Prepare the entry to record Joey Co$$s interest on December $31,2024.$

$4.$ At what amount will Joey Co$.$ report its investment on December $31,2024$s balance sheet? Why?

$5.$ Prepare the entry needed by Joey Co to report the investment amount you came up with in part $4$Joey Co$.$ purchased bonds of $$80$ Million as a long$-$term investment. The bonds have a stated rate of $8\%$ and are dated January $1,2024,$ which is also the purchase date. Management classifies this investment as available$-$for$-$sale. The bonds were priced to yield $10\%$ and sold for $$66$ million. Interest is received semiannually on June $30$ and December $31.$ Due to economic factors, the fair value of the bonds at December $31,2024$ was $$70$ million. Joey Co$.$ used effective interest to amortize the investment.

Required:

$1.$ Prepare the entry to record Joey Co$$s investment on January $1,2024.$

$2.$ Prepare the entry to record Joey Co$$s interest on June $30,2024.$

$3.$ Prepare the entry to record Joey Co$$s interest on December $31,2024.$

$4.$ At what amount will Joey Co$.$ report its investment on December $31,2024$s balance sheet? Why?

$5.$ Prepare the entry needed by Joey Co to report the investment amount you came up with in part $4$