On January 1, 2020, Riverbed Limited paid $529,836.45 for 10% bonds with a maturity value of $510,000. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature on January 1, 2025, with interest receivable on December 31 of each year. Riverbed accounts for the bonds using the amortized cost approach, applies ASPE using the effective interest method, and has a December 31 year end.

Prepare the journal entry to record the bond purchase. (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 O for the amounts. Round answers to 2 decimal places, e.g. 52.75.) Debit Credit Date Account Titles and Explanation Jan 1, 2020 Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 52.75.) Schedule of Interest Income and Bond Premium Amortization Effective Interest Method Date Cash Received Interest Income Premium Amortization $ 01/01/20 12/31/20 $ 12/31/21 12/31/22 12/31/23 12/31/24 $ $ $ Prepare the journal entry to record interest received and interest income for 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 Ofor the amounts. Round answers to 2 decimal places, e.g. 52.75.) Debit Credit Date Account Titles and Explanation Dec 31, 2020 If Riverbed used the straight-line method of discount/premium amortization, prepare the journal entry to record interest received and interest income the company would make each year. (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 O for the amounts. Round answers to 2 decimal places, e.g. 52.75.) Account Titles and Explanation Debit Credit Credit