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.

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

Prepare the journal entry to record interest received and interest income for $2023.($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 $0$ for the

amounts. List all debit entries before credit entries. Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

If Blue Spruce used the straight$-$line method of discount$/$premium amortization, prepare the journal entry to record interest

received and interest income the company would make each year. $($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 $0$ for the amounts. List all debit

entries before credit entries. Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

Account Titles and Explanation

Debit

Credit

Compare the total interest income reported over the five$-$year period under the effective interest method and the straight$-$line

method. $($Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

Total interest income under the two methods