On April 1, 2021, Blue Spruce Corporation issued $488,000, 5-year bonds. On this date, Shoreline Corporation purchased the bonds from Blue Spruce to earn interest. Interest is received semi-annually on April 1 and October 1 and Shorelines year end is March 31. Below is a partial amortization schedule for the first three interest periods of the bond issue.

Semi-Annual Interest Period			Interest Received			Interest Revenue			Amortization			Bond Amortized Cost
April 1, 2021												$510,502
October 1, 2021			$9,760			$7,658			$2,102			508,400
April 1, 2022			9,760			7,626			2,134			506,266
October 1, 2022			9,760			7,594			2,166			504,100

Were the bonds purchased at a discount or at a premium?

Bonds purchased at a select an option premiumdiscount.

What is the face value of the bonds?

Face value of the bonds

$enter the Face value of the bonds in dollars

What will the bonds amortized cost be at the maturity date?

Bonds amortized cost at the maturity date

$enter Bonds amortized cost at the maturity date in dollars

What is the bonds contractual interest rate? The market interest rate? (Round answers to 2 decimal places, e.g. 52.75.)

		Annual		Semi-annual
Contractual interest rate		enter percentages rounded to 2 decimal places %		enter percentages rounded to 2 decimal places %
Market interest rate		enter percentages rounded to 2 decimal places %		enter percentages rounded to 2 decimal places %

Prepare the journal entries to record the purchase of the bonds; the receipt of interest on October 1, 2021; the accrual of interest on March 31, 2022; and the receipt of interest on April 1, 2022. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date Apr. 1, 2021Oct. 1, 2021Mar. 31, 2022Apr. 1, 2022	enter an account title to record purchase of investment Investments at FVTPLInvestments at Amortized CostNo EntryCashInterest ReceivableInterest RevenueInterest PayableInvestment in Associate	enter a debit amount	enter a credit amount
	enter an account title to record purchase of investment Investment in AssociateInterest PayableNo EntryCashInterest RevenueInterest ReceivableInvestments at FVTPLInvestments at Amortized Cost	enter a debit amount	enter a credit amount
	(To record purchase of investment.)
choose a transaction date Apr. 1, 2021Oct. 1, 2021Mar. 31, 2022Apr. 1, 2022	enter an account title to record collection of interest Interest PayableInterest ReceivableCashInvestments at Amortized CostInvestment in AssociateInterest RevenueInvestments at FVTPLNo Entry	enter a debit amount	enter a credit amount
	enter an account title to record collection of interest No EntryInvestment in AssociateInvestments at Amortized CostInterest RevenueInterest PayableCashInterest ReceivableInvestments at FVTPL	enter a debit amount	enter a credit amount
	enter an account title to record collection of interest No EntryInvestment in AssociateInterest RevenueInterest ReceivableInvestments at Amortized CostInvestments at FVTPLCashInterest Payable	enter a debit amount	enter a credit amount
	(To record collection of interest.)
choose a transaction date Apr. 1, 2021Oct. 1, 2021Mar. 31, 2022Apr. 1, 2022	enter an account title to accrue interest revenue Investments at FVTPLInterest ReceivableInterest RevenueNo EntryInvestments at Amortized CostInvestment in AssociateInterest PayableCash	enter a debit amount	enter a credit amount
	enter an account title to accrue interest revenue CashInvestments at Amortized CostInterest RevenueInterest ReceivableNo EntryInvestment in AssociateInterest PayableInvestments at FVTPL	enter a debit amount	enter a credit amount
	enter an account title to accrue interest revenue No EntryCashInvestments at FVTPLInvestment in AssociateInvestments at Amortized CostInterest ReceivableInterest RevenueInterest Payable	enter a debit amount	enter a credit amount
	(To accrue interest revenue.)
choose a transaction date Apr. 1, 2021Oct. 1, 2021Mar. 31, 2022Apr. 1, 2022	enter an account title to record the Collection of interest receivable Interest PayableInvestment in AssociateInvestments at Amortized CostCashInvestments at FVTPLNo EntryInterest RevenueInterest Receivable	enter a debit amount	enter a credit amount
	enter an account title to record the Collection of interest receivable Investments at FVTPLInterest ReceivableCashInterest RevenueInvestments at Amortized CostInterest PayableNo EntryInvestment in Associate	enter a debit amount	enter a credit amount
	(Collection of interest receivable.)