On January 1, 2020, Blue Spruce Company purchased $304,000 worth of 8% bonds of Aguirre Co. for $280,526. The bonds were purchased to yield 10% interest. Interest is payable semi-annually, on July 1 and January 1. The bonds mature on January 1, 2025. Blue Spruce Company uses the effective interest method to amortize the discount or premium. On January 1, 2022, to meet its liquidity needs, Blue Spruce Company sold the bonds for $281,752, after receiving interest.

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Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as FV-OCI. (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 Ofor the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 FV-OCI Investments 280,526 Cash 280,526 Prepare the amortization schedule for the bonds. (Round answers to O decimal places, e.g. 5,275.) Schedule of Interest Revenue and Bond Discount Amortization-Effective Interest Method Interest Receivable Or Cash Received Interest Revenue Bond Discount Amortization Carrying Amount of Bonds $ 28052 12,160 $ 14,026 $ 1,866 282,39 12,160 14,120 1,960 284,39 12,160 14,218 2,058 286,4 12,160 14,320 2,160 288,57 12,160 14,428 2,268 290.83 12,160 14,542 2,382 293,22 12,160 14,661 2,501 295,72 12,160 14,786 2,626 298,34 12,160 14.917 2.757 301,10 12,160 15.055 2,895 304,000 121,600 $ 145,074 $ 23,474 Prepare the journal entries to record the semi-annual interest on July 1, 2020, and December 31, 2020. (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 for the amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit July 1 Cash 12,160 FV-OCI Investments 1,866 Interest Income 14,026 Dec. 31 Interest Receivable 12.160 FV-OCI Investments 1,960 Interest Income 14,120 Assuming the fair value of Aguirre bonds is $283,272 on December 31, 2021, prepare the necessary adjusting entry. (Assume that the fair value adjustment on December 31, 2020 was a debit of $2,565.) (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 Ofor the amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31 Unrealized Gain or Loss - OCI 7,863 FV-OCI Investments 7,863