On January 1, 2021, Skysong Inc., a public company, purchased $630,000 of Pearl Corporation's five-year, 6% bonds for $657,569 when the market interest rate was 5%. Interest is received semi-annually on July 1 and January 1. Skysong's year end is December 31. Skysong intends to hold Pearl's bonds until January 1, 2026, the date the bonds mature. The bonds' fair value on December 31, 2021, was $650,000. Record the purchase of the bonds on January 1, 2021. (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.) Date Account Tities and Explanation Debit Credit Jan. 1 (To record purchase of investment.) e Textbook and Media Prepare the entry to record the receipt of interest on July 1, 2021. (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, eg. 5,276.) Date Account Titles and Explanation Debit Credit Jul. 1 (To record collection of interest on bonds.) e Textbook and Media Prepare the adjusting entry required at December 31, 2021. (Credit account titles are automatically Indented when the amour 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 0 decimal places, e.g. 5,276.) Date Account Titles and Explanation Debit Credit Dec. 31 (To accrue interest revenue.) e Textbook and Media Show the financial presentation of the bonds for Skysong on December 31, 2021. (Round answers to O decimal places, eg. 5,276 SKYSONG INC. Partial Balance Sheet $ e Textbook and Media Prepare the entry to record the receipt of interest on January 1, 2022. (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.) Date Account Titles and Explanation Debit Credit Jan. 1 (Collection of interest receivable.) e Textbook and Media 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 Atles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record maturity of bond investment.) e Textbook and Media Accountries are for tre ROU versu vecuma proces, .. Date Account Titles and Explanation Debit Credit Jan. 1 (To record purchase of investment.) Jul. 1 | (To record collection of interest on bonds.) Dec. 31 (To accrue interest revenue.) Dec. 31 (To record fair value adjustment.)
