On January 1, 2021, Marin Inc., a public company, purchased $470,000 of Pearl Corporations five-year, 5% bonds for $491,109 when the market interest rate was 4%. Interest is received semi-annually on July 1 and January 1. Marins year end is December 31. Marin intends to hold Pearls bonds until January 1, 2026, the date the bonds mature. The bonds fair value on December 31, 2021, was $480,000.

Date Account Titles and Explanation Debit Credit Jan. 1 No EntryCashInterest ReceivableInterest RevenueLong-Term Investment at FVTOCIBondsShort-Term Investment at FVTPLBondsShort-Term Investment at ACBondsInvestments at Amortized CostInvestment Income or LossInterest Payable Investment Income or LossShort-Term Investment at FVTPLBondsInterest ReceivableInterest RevenueNo EntryLong-Term Investment at FVTOCIBondsInvestments at Amortized CostShort-Term Investment at ACBondsCashInterest Payable (Collection of interest receivable.) Prepare the entry to record the receipt on maturity of the bonds on January 1, 2026. Assume the entry to record the last interest payment has been recorded. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Short-Term Investment at ACBondsInvestments at Amortized CostInterest PayableInterest RevenueLong-Term Investment at FVTOCIBondsInvestment Income or LossCashInterest ReceivableShort-Term Investment at FVTPLBondsNo Entry No EntryInterest ReceivableInterest RevenueInvestments at Amortized CostInvestment Income or LossCashInterest PayableShort-Term Investment at FVTPLBondsLong-Term Investment at FVTOCIBondsShort-Term Investment at ACBonds (To record maturity of bond investment.) How would your answers to parts (a) through (c) change if the bonds were purchased for the purpose of trading? (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,276.) Date Account Titles and Explanation Debit Credit Jan. 1 Short-Term Investments at ACBondsInterest ReceivableNo EntryInterest RevenueInvestments at FVTPLCashInvestments at Amortized CostInterest PayableTrading Investments-Pearl BondsLong-Term Investments at FVTOCIBondsInvestment Income or Loss CashInterest ReceivableTrading Investments-Pearl BondsShort-Term Investments at ACBondsInvestments at Amortized CostLong-Term Investments at FVTOCIBondsInvestment Income or LossInterest RevenueInterest PayableInvestments at FVTPLNo Entry (To record purchase of investment.) Jul. 1 Investments at FVTPLInterest ReceivableInvestment Income or LossInterest RevenueLong-Term Investments at FVTOCIBondsInterest PayableCashTrading Investments-Pearl BondsInvestments at Amortized CostShort-Term Investments at ACBondsNo Entry CashInterest RevenueLong-Term Investments at FVTOCIBondsInvestments at Amortized CostInterest ReceivableNo EntryTrading Investments-Pearl BondsInvestment Income or LossInvestments at FVTPLInterest PayableShort-Term Investments at ACBonds (To record collection of interest on bonds.) Dec. 31 Investment Income or LossInvestments at FVTPLLong-Term Investments at FVTOCIBondsInterest PayableInterest RevenueInvestments at Amortized CostTrading Investments-Pearl BondsNo EntryShort-Term Investments at ACBondsInterest ReceivableCash Long-Term Investments at FVTOCIBondsInvestments at FVTPLNo EntryInterest RevenueInvestments at Amortized CostTrading Investments-Pearl BondsInterest PayableShort-Term Investments at ACBondsInvestment Income or LossInterest ReceivableCash (To accrue interest revenue.) Dec. 31 Short-Term Investments at ACBondsInvestments at Amortized CostTrading Investments-Pearl BondsInterest RevenueCashLong-Term Investments at FVTOCIBondsInterest ReceivableInvestments at FVTPLInterest PayableInvestment Income or LossNo Entry Interest RevenueTrading Investments-Pearl BondsInterest PayableCashShort-Term Investments at ACBondsInvestment Income or LossInvestments at Amortized CostInterest ReceivableNo EntryLong-Term Investments at FVTOCIBondsInvestments at FVTPL (To record fair value adjustment.)