On January $1,2023,$ Grouper Limited paid $$511,012\mathrm{.}00$ for $12\%$ bonds with a maturity value of $$475,000.$ The bonds provide the

bondholders with a $10\%$ yield. They are dated January $1,2023,$ and mature on January $1,2028,$ with interest receivable on December

$31$ of each year. Grouper applies ASPE using the effective interest method, and has a December $31$ year end. Assume that Grouper

hopes to make a gain on the bonds as interest rates are expected to fall. Grouper accounts for the bonds at fair value with changes in

value taken to net income, and separately recognizes and reports interest income. The fair value of the bonds at December $31$ of each

year end is as follows:

$2023$

$$507,500\mathrm{.}00$

$2024$

$$489,250\mathrm{.}00$

$2025$

$$487,350\mathrm{.}00$

$2026$

$$481,650\mathrm{.}00$

$2027$

$$475,000\mathrm{.}00$Prepare the journal entries to record interest income and interest received and recognition of fair value at December $31,2023,$

$2024,$ and $2025.($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. List all debit entries before credit entries. Round answers to $2$

decimal places, e$.$g$.52\mathrm{.}75.)$

Account Titles and Explanation

$($To record interest collected$)$

$($To record fair value adjustment$)$