On 1 July 20X8, Sun Company purchased $5,500,000 of Moon Corp. 8.1% bonds, classified as an AC investment. The bonds pay semi-annual interest each 30 June and 31 December. The market interest rate was 8% on the date of purchase. The bonds mature on 30 June 20X3. (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 Sun Company.

Construct a table that shows interest revenue reported by Sun, and the carrying value of the investment, for each interest period for four interest periods. Use the effective-interest method.

PERIOD	CASH PAIMENT	4 %INT REVEN	DISCOUNT AMORTIAZTION	BOND CARRYN VALUE
1
2
3
4

3. Prepare the entries for the first two interest periods based on your calculations in requirement 2. (

Record the first period revenue.

Record the second period revenue.

How much interest revenue would be reported for the year ended 31 December 20X9?

. What would the balance of the investment account for the year ended 31 December 20X9