nearest cent for presentation purposes in your answer. $(5$ marks$)$

Question $4$: Amortized Cost model for bond investment $(7$ marks$)$

On January $1,2022,$ Roarke Ltd$.$ paid $$457,876\mathrm{.}36$ for $4\%$ bonds with a maturity value of $$500,000.$ The purchase price was based on a market interest rate of $6\%.$ The bonds were issued by Biggs. Inc. on January $1,2022,$ and mature on January $1,2027,$ with interest receivable on December $31$ of each year. Roarke Ltd$.$ classifies the bonds as a nonstrategic debt investment held to earn interest income.

Instructions

Prepare the following for Roarke Ltd$.($record all journal entry amounts to the nearest cent$)$:

A$.$ Prepare the journal entry to record the bond purchase. $(2$ marks$)$

B$.$ Prepare the journal entry to record the receipt of interest on December $31,2023.(3$ marks$)$

C$.$ Prepare the journal entry to record the disposal of the bond at maturity. $(2$ marks$)$