On 1 July 20X2. King Ltd. purchased $600,000 bonds of Princess Inc. at par. The bonds pay 7% interest annually on June 30. The bonds mature on 30 June 20X9. King has a June 30 year- end. At 30 June 20X3, King assessed that the credit risk of the Princess bonds had significantly increased and that the expected credit losses were estimated to be $29,000 Required: 1. Prepare journal entries for fiscal 20X3 related to these bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the Interest revenue. Note: Enter debits before credits. Date General Journal Debit Credit 30 June 20X3 Record entry Clear entry View general journal 2. At 30 Jue 20X4, King assessed that the Princess bonds were now credit-impaired due to an adverse change in technology within Princess's industry. The present value of the estimated future cash flows was $525,000. Prepare the journal entries for 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the Interest revenue Note: Enter debits before credits. Date General Journal Debit Credit 30 June 20X4 Record entry Clear entry View general journal 3. Given the facts in requirement 2, prepare the journal entry to recognize interest revenue for 20X5. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the interest received on June 30 Note: Enter debits before credits. Date General Journal Debit Credit 30 June 20X5 Record entry Clear entry View general journal