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On January 1,2025, Marin Company purchased 11% bonds having a maturity value of $320,000 for...

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Accounting

On January 1,2025, Marin Company purchased 11% bonds having a maturity value of $320,000 for $344,893.28. The bonds provide
the bondholders with a 9% yield. They are dated January 1,2025, and mature January 1,2030, with interest received on January 1 of
each year. Marin Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified
as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.
2025 $342,6002028 $330,400
2026 $329,2002029 $320,000
2027 $328,300
(a) Prepare the journal entry at the date of the bond purchase.
(b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2025.
(c) Prepare the journal entry to record the recognition of fair value for 2026.

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