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On January 1, 2021, the Fayette Corporation purchased 6%, three-year $320,000 corporate bonds. Interest on the bonds is due each December 31, beginning December 31,

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On January 1, 2021, the Fayette Corporation purchased 6%, three-year $320,000 corporate bonds. Interest on the bonds is due each December 31", beginning December 31, 2021. The bonds were sold to yield 4%. The principal on the bonds will be due on December 31, 2023. What was the issuance price of the bonds on January 1, 2021, rounded to the nearest dollar? Select the answer that is closest to your answer calculated through either the Time Value of Money Tables (Chapter 6) or your financial calculator Part A Assume the Fayette Corporation had the intent and ability to record the investment as a Held-to-Maturity Debt Security. The company did not adopt the fair value option for the investment. 1. Calculate the issuance price of the bonds on January 1, 2021. (1 point) $ 2. Prepare the Fayette Corporation's January 1, 2021 journal entry to record the purchase of the bonds. (1 point) Debit Credit 01/01/21 3. Prepare the complete amortization schedule of the bonds. (2 points) 01/01/21 12/31/21 12/31/22 12/31/23 Totals Name 4. Prepare the Fayette Corporation's joumal entry on December 31, 2021 to record the interest received on the bond. (1 point) Debit Credit 12/31/21 5. Prepare the Fayette Corporation's journal entry on December 31, 2022 to record the interest received on the bond. (1 point) Debit Credit 12/31/22 Part B. Ignore your answer to Part A Using the original Information assume the Fayette Corporation's intent is record the investment as an Available for Sale Debt Security and that it correctly recorded the Investment on January 1, 2021. The company did not adopt the fair value option for the investment Assume the band's fair value at December 31, 2021 was $333,500. Prepare the Fayette Corporation's Journal ontry and adjusting journal entry at December 31, 2021 related to the Available for Sale Debt Security. (1 point) Debit Credit 12/31/21

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