account include $($i$)($Click the icon to view the investment information.$)$

Required

Record the journal entry for the purchase of the bond.

Next, prepare a compound entry to record the interest revenue earned and due on the bond at December $31.($Round to the nearest dollar.$)$

Prepare any journal entry required relating to the change in fair value of the bond as of December $31.$

Investment information

a$.$ On January $1,$ Fox acquired a $$260,000,7\%,14-$year government bond with interest paid annually on

January $1.$ Because the market rate of interest was $5\%$ on that date, Fox paid $$311,473$ for the bond.

The bonds were classified as amortized cost by Fox and had a fair value of $$288,000$ plus accrued

interest on December $31.$

b$.$ On July $1,$ Fox acquired $7,000$ shares of Salmon Falls at a price of $$26$ per share. On December $31,$

dividends of $$1\mathrm{.}70$ per share were declared with an expected date of payment $15$ days later. On

December $31,$ the fair value of the Salmon Falls shares had increased to $$29$ per share. The shares are

classified as fair value through profit or loss by Fox.

c$.$ On July $1,$ Fox acquired $23,000$ shares $(20\%)$ of the outstanding shares of Putney at a price of $$48$

per share, giving it significant influence over Putney. Putney had net income of $$320,000$ for $t$ Question Viewer

months ended December $31,$ and declared and paid dividends of $$205,000$ to its shareholder

December $31.$ On December $31,$ Putney's shares had a fair value of $$54$ per share.

Cash

alls.

Dividend revenue

Dividends receivable

Interest receivable

Interest revenue

Investment in government bonds

Investment income

No entry required

Unrealized gain on fair value through profit or loss investment

Unrealized loss on fair value through profit or loss investment

Prepare any journal entry required relating to the change in fair value of the shares of Salmon Falls as of December $31.$