Current Attempt in Progress On January 1, 2023, Pearl Corporation purchased a newly issued $1,525,000 bond. The bond matured on December 31, 2025, and paid interest at 6% every June 30 and December 31. The market interest rate was 8%. Pearl's fiscal year-end is October 31, and the company had the intention and ability to hold the bond until its maturity date. The bond will be accounted using the amortized cost model. Click here to view Table A.2 - PRESENT VALUE OF 1 - (PRESENT VALUE OF A SINGLE SUM) Click here to view Table A.4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (a) Your Answer Correct Answer Your answer is correct. Calculate the price paid for the bond using a financial calculator or Excel functions. (Round answers to 2 decimal places, e.g. 52.75.) PV $ 1445057.41 eTextbook and Media Solution List of Accounts Attempts: 2 of 2 used (b) Your answer is correct. Prepare an amortization schedule for the bond. (Round answers to 2 decimal places, e.g. 52.75.) Date Cash Received Interest Revenue Discount Amortization Jan. 1, 2023 June 30, 2023 $ 45,750.00 57,802.30 $ 12.052.30 Dec. 31, 2023 45,750.00 58,284.39 June 30, 2024 45,750.00 58,785.76 12,534.39 13,035.76 Dec. 31, 2024 45,750.00 59,307.19 13,557.19 June 30, 2025 45,750.00 Dec. 31, 2025 45,750.00 Totals 274,500.00 +A 59,849.48 60,413.46 354,442.59 +A 14,099.48 14,663.46 79,942.59 +A An (P (b) Your answer is correct. Prepare an amortization schedule for the bond. (Round answers to 2 decimal places, e.g. 52.75.) Cash Received 45,750.00 45,750.00 45,750.00 Interest Revenue +A $ 57,802.30 58,284.39 58,785.76 Discount Amortization LA $ 12,052.30 +A Amortized Cost (Present Value) 1,445,057.41 1,457,109.71 12,534.39 1,469,644.10 13,035.76 1,482,679.86 45,750.00 59,307.19 13,557.19 1,496,237.06 45,750.00 45,750.00 274,500.00 +A 59,849.48 60,413.46 354,442.59 +A 14,099.48 1,510,336.54 14,663.46 1,525,000.00 79,942.59 (c) Prepare the journal entries on the books of Pearl Corporation for each of the following dates. (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when the 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. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.) January 1, 2023 June 30, 2023 October 31, 2023 December 31, 2023 December 31, 2025 (two entries) one for interest and one for maturity of bond Date Account Titles and Explanation 1,2023 Bond Investment at Amortized Cost Cash 30, 2023 Cash Debit Credit 1,445,057.41 45,750.00 Bond Investment at Amortized Cost 12,052.30 Interest Income 1,2023 Interest Receivable Bond Investment at Amortized Cost Interest Income 1,445,057.41 57802.30 $1,2023 Interest Receivable $1,2023 31,2025 Bond Investment at Amortized Cost Interest Income Cash Bond Investment at Amortized Cost Interest Receivable Interest Income Cash Bond Investment at Amortized Cost Interest Receivable 31, 2025 Interest Income (To record collection of interest.) Cash Bond Investment at Amortized Cost (To record maturity of bond.)