On 1 January 20X2, Investor Company purchased $2,100,000 of Operating Corp. 2% bonds, classified as an AC Investment. The bonds pay semi-annual interest each 30 June and 31 December. The market Interest rate was 3% on the date of purchase. The bonds mature on 30 December 20X11. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the price paid by Investor. (Round time value factor to 5 decimal places. Round your Intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Price paid 2. Construct a table that shows Interest revenue reported by Investor, and the carrying value of the Investment, for the first two Interest periods. Use the effective-Interest method. (Round your answers to the nearest whole dollar amount.) Period Cash Payment 1.5% Interest Revenue Discount Amortization Bond Carrying Value 0 1 2 3. Prepare the entry for the first Interest payment based on your calculations in requirement 2. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the Interest revenue. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal On 1 January 20X2, Investor Company purchased $2,100,000 of Operating Corp. 2% bonds, classified as an AC Investment. The bonds pay semi-annual interest each 30 June and 31 December. The market Interest rate was 3% on the date of purchase. The bonds mature on 30 December 20X11. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the price paid by Investor. (Round time value factor to 5 decimal places. Round your Intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Price paid 2. Construct a table that shows Interest revenue reported by Investor, and the carrying value of the Investment, for the first two Interest periods. Use the effective-Interest method. (Round your answers to the nearest whole dollar amount.) Period Cash Payment 1.5% Interest Revenue Discount Amortization Bond Carrying Value 0 1 2 3. Prepare the entry for the first Interest payment based on your calculations in requirement 2. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the Interest revenue. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal