1. On April 1, 2022, Green Corporation issued 6% bonds dated February 1, 2022, with the face amount of $500,000. The bonds were sold for their present value on April 1, 2022, plus two months of accrued interest. The bonds mature on January 31, 2027. Interest is paid semiannually on July 31 and January 31. Brown's fiscal year ends on December 31 each year. The effective annual interest rate is 8%. Required

A. Prepare the journal entry to record the accrued interest in the proceeds from the bond sale on April 1, 2022.

B. Fill in the discount amortization table and prepare the journal entry to record the issuance of the bonds (excluding the recording of accrued interest) on April 1, 2022.

Date	Cash (500,000x 0.03)	PVt-1x 0.04	Dis. Amorz.	Present Value
2/1/2022	-----	-----	-----------	459,443.5
7/31/2022	15,000

C. Prepare the journal entry to record the interest expense, discount amortization, and cash payment for interest on July 31, 2022.

2. Wynn Corporation purchased a $100,000 par value of Barr Company bonds at 98 with an annual yield of 10% on 1/1/2023. The bonds pay interest annually on 12/31 and the stated annual interest rate is 9%. Wynn classified the investments in bonds as trading securities. Wynn received $9,000 interest for investments in Barr Company bonds for 2023 on 12/31/2023 (note: the discount of the bond investments should be amortized using the effective interest method when recording the receipt of $9,000 interest on 12/31/2023). The market price of Barr company bonds was 99 on 12/31/2023. The fair value adjustment account balance was a debit of $50 before the fair value adjustment on 12/31/2023.

Required:

A. Fill in the following discount amortization table and prepare journal entries for the transactions that occurred in 2023 (i.e., The acquisition of bonds on 1/1/2023 and the receipt of interest on 12/31/2023).

Date	Cash (dr.)	Int. Rev. (cr.)	Dis. Amor. (dr.)	Debt Investments
1/1/23	--------	----------	---------	98,000
12/31/23	9,000	9800	800	98800

B. Make the appropriate entry to apply the fair market valuation rule for the debt investments in Barr Company's bonds on 12/31/2023.