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On January 1, 2020, 76ers Corp. acquired 4%, $ 950,000 (face value) bonds of Nets Ltd., to yield 6%. The bonds were dated January 1,

On January 1, 2020, 76ers Corp. acquired 4%, $ 950,000 (face value) bonds of Nets Ltd., to yield 6%. The bonds were dated January 1, 2020, and mature on January 1, 2025, with interest payable each January 1. 76ers intends to hold the bonds to maturity and will use the FV-NI model and the effective- interest method of amortization of bond premium or discount. Instructions By rounding all values to the nearest dollar, prepare the following entries in 76ers's books: a) Acquisition of bonds on January 1, 2020, (3 marks) b) Prepare a full amortization table for this FV-NI investment in debt (3 marks) c) Year-end adjusting entry at December 31, 2020, (2.5 marks) d) Receipt of the first interest payment on January 1, 2021. (1.5 marks)

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