accounting

Question 3 of 7 5.92/7 III View Policies Show Attempt History Current Attempt in Progress Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. Amortized cost Fair value 12/31/20 $410,900 $416,800 12/31/21 $445,100 $434,600 12/31/22 $546,300 $546,300 (a) Indicate whether the bonds were purchased at a discount or at a premium Discount (b) Prepare the adjusting entry to record the bonds at fair value at December 31, 2020. The Fair Value Adjustment account has a debit balance of $1,100 prior to adjustment Prepare the adjusting entry to record the bonds at fair value at December 31, 2021. (c) (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 for the amounts.) No. Date Account Titles and Explanation Debit Credit Dec. 31. Fair Value Adjustment Unrealized Holding Gain or Loss - Equity Dec. 31. (c) 2021 Unrealized Holding Gain or Loss - Equity Fair Value Adjustment (b) 2020 e Textbook and Media