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In: AccountingOn January 1, 2020, Larkspur Company purchased 12% bonds, havinga maturity value of $275,000 for...On January 1, 2020, Larkspur Company purchased 12% bonds, havinga maturity value of $275,000 for $295,849.07. The bonds provide thebondholders with a 10% yield. They are dated January 1, 2020, andmature January 1, 2025, with interest received on January 1 of eachyear. Larkspur Company uses the effective-interest method toallocate unamortized discount or premium. The bonds are classifiedas available-for-sale category. The fair value of the bonds atDecember 31 of each year-end is as follows.2020$293,8002023$285,9002021$284,8002024$275,0002022$283,800(a)Prepare the journal entry at the date of the bondpurchase.(b)Prepare the journal entries to record the interest revenue andrecognition of fair value for 2020.(c)Prepare the journal entry to record the recognition of fairvalue for 2021.