On January 1, 2019, Alpha Corp purchased $1 Million, 6% five year bonds to yield 8%. The $60,000 coupon was paid annually. Alpha paid $920,146 for the bonds because the market rate exceeded the stated rate. Alpha considered this investment as Available for Sale. Note: you do not need any PV tables to make any of these calculations.

On December 31, 2019, the fair value of the bonds was $950,000.

On December 31, 2020, the carrying value of the bonds moved to $948,458; the fair value of the bonds was $940,000.

1. (2 points) Provide the journal entry for the initial investment.

2. (4 points) Provide the journal entry at December 31, 2019 for the cash payment; please make a second entry to mark the investment to market

3. (2 points) Provide the journal entry on December 31, 2020 to mark the investment to market (hint: no calculation of interest or journal entry for the payment is necessary- I have already done this for you)