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On January 1, 2021, Ithaca Corp, purchases Cortiand Inc bonds that have a face value of $350,000. The Cortland bonds have a stated Interest rate

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On January 1, 2021, Ithaca Corp, purchases Cortiand Inc bonds that have a face value of $350,000. The Cortland bonds have a stated Interest rate of 6%. Interest is paid semiannually on June 30 and December 31, and the bonds mature in 10 years. For bonds of similar risk and maturity, the market yield on particular dates is as follows: FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of 85 (Use appropriate factor(s) from the tables provided.): 7.00 January 1, 2021 June 30, 2021 December 31, 2021 9.00 Required: 1. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2021 (ignoring brokerage fees), and prepare journal entry to record the purchase. 2. Prepare all appropriate Journal entries related to the bond investment during 2021, assuming Ithaca accounts for the bonds as a held-to-maturity Investment. Ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds 3. Prepare all appropriate journal entries related to the bond investment during 2021, assuming that Ithaca chose the fair value option when the bonds were purchased, and that Ithaca determines fair value of the bonds semiannually. Ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. Complete this question by entering your answers in the tabs below. Required 1 Req 1 General Journal Required 2 Required 3 Calculate the price Ithaca would have paid for the Cortiand bonds on January 1, 2021 (ignoring brokerage fees). (Do not round your intermediate calculations and round your final answer to nearest whole number.) Bond fair value Required Reg 1 General Journal > Reg 1 General Journal Required Required 2 heured) Prepare a journal entry to record the purchase. (It no entry is required for transaction event, sunt "No journal anery reared in the first account held. Round your final answers to nearest whole number) View transaction to Journal entry worksheet

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