On January $1,2024,$ Gator Ltd$.$ purchased $$376,000$ face value of Gibson bonds with an annual coupon rate of $8\%.$ The bonds were purchased to yield $10\%$ interest based on market rates on January $1,2024.$ Interest is payable semi$-$annually, on July $1$ and January $1.$ The bonds mature on January $1,2029.$ Gator Ltd$.$ uses the effective interest method to amortize the discount or premium. On January $1,2026,$ to meet its liquidity needs, Gator Ltd$.$ sold the bonds for $$348,482,$ after receiving interest. Gator Ltd$.$ has a December $31$ year end.

Required:

a$.$ Prepare the journal entry to record the purchase of these bonds on January $1,2024.$ Assume that the bonds are classified as FV$-$OCI.

b$.$ Prepare an amortization schedule for this bond investment, on Excel.

c$.$ Prepare the journal entries to record the semi$-$annual interest on July $1,2024$ and Dec $31,2024.($Round dollar amounts to zero decimal places$).$

d$.$ Assuming the fair value of Gibson bonds is $$350,362$ on December $31,2025,$ prepare the necessary adjusting entry. $($Assume that the fair value adjustment on December $31,2024$ was a gain $($i$.$e$.$ debit$)$ of $$3,173.)$

e$.$ Prepare the journal entry to record the sale of the bonds on January $1,2026,$ including reclassifying holding gains or losses to net income.