On January 1, 2015, Morissette Inc. purchased $800,000 of 10-year, 6% bonds for $770,921. The purchase price

Question:

On January 1, 2015, Morissette Inc. purchased $800,000 of 10-year, 6% bonds for $770,921. The purchase price was based on a market interest rate of 6.5%. Interest is received semi-annually on July 1 and January 1. Morissette's year end is October 31. Morissette intends to hold the bonds until January 1, 2025, the date the bonds mature. The bonds' fair value on October 31, 2015, was $790,000.
Instructions
(a) Record the purchase of the bonds on January 1, 2015.
(b) Prepare a bond amortization schedule for the term of the bonds.
(c) Prepare the entry to record the receipt of interest on July 1, 2015.
(d) Prepare any adjusting entries required at October 31, 2015.
(e) Prepare the entry to record the repayment of the bonds on January 1, 2025.
(f) Show the financial statement presentation of the bonds at October 31, 2015?