B D On January 1, 2020, Sunshine Company acquired bonds of Rain Products, Inc. Additional 2 Information concerning the bond investment follows. 3 4 Par value of bonds acquired $ 200,000 5 Acquisition cost $ 185,589 6 Stated rate of bonds 9% 7 Expected yield for Sunshine Company 12% 8 9 The interest is received on January 1 of each year, and the bonds mature January 1, 2023 10 The bonds are classified as held-to-maturity. 11 12 (a) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the 13 effective-interest method. 14 15 Schedule of Interest Revenue and Bond Discount Amortization Effective-Interest Method 16 9% Bond Purchased to Yield 12% 17 18 19 20 21 22 23 24 25 26 (b) Prepare the journal entry for the interest revenue and the discount amortization under the 27 effective-interest method at December 31, 2021. 28 29 Date Account Debit Credit 30 31 32 33 34 35 36 PARTA PARTB PARTC + Ready