On January $1,2025,$ Ayayai Company purchased $$350,000,8\%$ bonds of Aguirre Co$.$ for $$322,973.$ The bonds were purchased to yield $10\%$ interest. Interest is payable semiannually on July $1$ and January $1.$ The bonds mature on January $1,2030.$ Ayayai Company uses the effective$-$interest method to amortize discount or premium. On January $1,2027,$ Ayayai Company sold the bonds for $$324,733$ after receiving interest to meet its liquidity needs.

$($a$)$

$($b$)$

Prepare the amortization schedule for the bonds. $($Round answers to $0$ decimal places, e$.$g$.1,250.)$

On January $1,2025,$ Ayayai Company purchased $$350,000,8\%$ bonds of Aguirre Co$.$ for $$322,973.$ The bonds were purchased to yield $10\%$ interest. Interest is payable semiannually on July $1$ and January $1.$ The bonds mature on January $1,2030.$ Ayayai Company uses the effective$-$interest method to amortize discount or premium. On January $1,2027,$ Ayayai Company sold the bonds for $$324,733$ after receiving interest to meet its liquidity needs.

$($a$)$

$($b$)$

$($c$),($d$)$ and $($e$)$

$($c$)$ Prepare the journal entries to record the semiannual interest on July $1,2025,$ and December $31,2025.$

$($d$)$ If the fair value of Aguirre bonds is $$326,733$ on December $31,2026,$ prepare the necessary adjusting entry. $($Assume the fair value adjustment balance on December $31,2025,$ is a debit of $$3,212.)$