On January $1,2020,$ Pearl Company purchased $11\%$ bonds, having a maturity value of $$289,000$ for $$311,481\mathrm{.}74.$ The bonds provide

the bondholders with a $9\%$ yield. They are dated January $1,2020,$ and mature January $1,2025,$ with interest received on January $1$ of

each year. Pearl Company uses the effective$-$interest method to allocate unamortized discount or premium. The bonds are classified as

available$-$for$-$sale category. The fair value of the bonds at December $31$ of each year$-$end is as follows.

$($a$)$ Prepare the journal entry at the date of the bond purchase.

$($b$)$ Prepare the journal entries to record the interest accrual and amortization, and the recognition of fair value for $2020.$

$($c$)$ Prepare the journal entry to record the recognition of fair value for $2021.$

$($Round answers to $2$ decimal places, e$.$g$.2,525\mathrm{.}25.$ Credit account titles are automatically indented when amount is entered. Do not indent

manually. If no entry is required, select $"$No Entry" for the account titles and enter $O$ for the amounts.$)$

No$.$

Date

$($a$)$

$($b$)$

$($To record accrued interest and amortization$)$

$($c$)$