2 of 9 5.12/12.51 EI Current Attempt in Progress On January 1, 2025, Tamarisk Company purchased $300,000, 6% bonds of Aguirre Co. for $275,666. The bonds were purchased to yield 8% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2030. Tamarisk Company uses the effective-interest method to amortize discount or premium. On January 1, 2027, Tamarisk Company sold the bonds for $277,397 after receiving interest to meet its liquidity needs. (a) Your answer is correct. Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available-for-sale (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 1. 2025 Account Titles and Explanation Debt Investments Cash Debit 275,666 Credit 275.666 (c) Prepare the journal entries to record the semiannual interest on July 1, 2025, and December 31, 2025. (d) If the fair value of Aguirre bonds is $279,397 on December 31, 2026, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on December 31, 2025, is a debit of $3,698.) (e) Prepare the journal entry to record the sale of the bonds on January 1, 2027. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 1,225. Record journal entries in the order presented in the problem.) te Account Titles and Explanation Debit Credit: 025 Cash Debt Investments Interest Revenue 2025 Interest Receivable Debt Investments Interest Revenue (c) (1) July 1, 2025 Cash Debt Investments Interest Revenue (2) Dec. 31, 2025 Interest Receivable Debt Investments Interest Revenue (d) Dec. 31, 2026 Debt Investments i Interest Revenue (e) Jan. 1.2027