On January $1,2023,$ Blue Spruce Limited paid $$386,610\mathrm{.}12$ for $13\%$ bonds with a maturity value of $$360,000.$ The bonds provide the bondholders with a $11\%$ yield. They are dated January $1,2023,$ and mature on January $1,2028,$ with interest receivable on December $31$ of each year. Blue Spruce accounts for the bonds using the amortized cost approach, applies ASPE using the effective interest method, and has a December $31$ year end.

$($a$)$

Your answer is correct.

Prepare the journal entry to record the bond purchase. $($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 debitentry before credit entry. Round answers to $2$ decimal ploces, es$.52\mathrm{.}75.)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1,$

$2023$ Bond Investment at Amortized Cost

eTextbook and Media

Correct Answer $($Used$)$

Prepare a bond amortization schedule. $($Round onswers to $2$ decimal places, eg$.52\mathrm{.}75.)$

$($c$)$

Prepare the journal entry to record interest recelved and interest Income for $2023.($Credit occount tilles are outomatleolly indented when the omount is entered. Do not indent manually. If no entry Is required, select $"$No Entry" for the account titles and enter O for the amounts. Ltst all deblt entries before credit entries. Round answers to $2$ declmol places, eg$.52\mathrm{.}75.)$

Date Account Titles and Explanation

Dec. $31,$

$2023$

Debit

Credit

$$

$$

$$

$$

$$