Exercise 9-14 On July 1, 2020, Pina Colada Aggregates Ltd. purchased 6% bonds having a maturity value of $115,000 for $119,123. The bonds provide the bondholders with a 5% yield. The bonds mature four years later, on July 1, 2024, with interest receivable June 30 and December 31 of each year. Pina Colada uses the effective interest method to allocate unamortized discount or premium. The bonds are accounted for using the FV-OCI model with recycling. Pina Colada has a calendar year end. The fair value of the bonds at December 31, 2020 and 2021, was $118,869 and $117,543, respectively. Assume fair value adjustments are recorded at year end only. Immediately after collecting interest on December 31, 2021, the bonds were sold for $117,543. Prepare the journal entry at the date of the bond purchase. (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. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit July 1, 2020 FV-Oct Investments Cash LINK TO TEXT Prepare a bond amortization schedule to December 31, 2021. (Round answers to o decimal places, e.g. 5,275.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Cash Received Interest Revenue Premium Amortized Date Amortized Cost of Bonds July 1, 2020 $ Dec. 31, 2020 + $ June 30, 2021 Dec. 31, 2021 Prepare the entries and year-end entries from December 31, 2020, through to the collection of interest on December 31, 2021. (Credit account titles are automatically inden 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. Round answers to O places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 Cash FV-OCI Investments Interest Income (To record collection of Interest) FV-OCI Investments Unrealized Gain or Loss - (To record fair value adjustment) June 30, 2021 Cash FV-OCI Investments Interest Income (To record collection of interest) December 31, 2021 Cash FV-OCI Investments Interest Income (To record collection of interest) Following the three-step approach, prepare the journal entries for the sale of the bond on December 31, 2021. Include the reclassification of unrealized gains and losses to net income. (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. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Unrealized Gain or Loss -( FV-OCI Investments (To record fair value adjustment to date of disposal) Cash FV-OC! Investments (To record disposal of the bond) Loss on Disposal of Investi Unrealized Gain or Loss.( (To reclassify accumulated unrealized gains and losses from OCI to net income)