On January 1, 2022, Walter Consulting sold $1,000,000 of 6% bonds to Royle Enterprise. The bonds mature on December 31, 2025 (4 years). For bonds of similar risk and maturity, the market yield was 8%. Interest is paid semiannually on June 30 and December 31. Royle Enterprise purchased the bonds as an investment and plans to hold the bonds for approximately 2 years. The fair value of the bonds at 12/31/22 was $985,000. Royle's fiscal year end is December 31 and 2022 was its first year of business. 1A. Prepare the fair value adjusting entry for Royle Enterprise as of 12/31/22. Show your work. 1B. Show or describe exactly and specifically what will appear on the Balance Sheet of Royle Enterprise as of 12/31/22, related to these bonds. 1C. Show or describe exactly and specifically what will appear on the Income Statement of Royle Enterprise for the year ending 12/31/22. 1D. Prepare the journal entries Royle Enterprise should make on the following dates related to this investment. Assume that the fair value of these bonds is $875,000 at 12/31/23. Show your work. 6/30/23: 12/31/23: 1E. Assume Royle Enterprise sells these bonds on 4/1/24 for $1,025,000. Prepare all journal entries required on 4/1/24. Show your work. Accrue interest as of 4/1/24: Adjust to fair value as of 4/1/24: Reclassification entry as of 4/1/24: Record the sale of the investment on 4/1/24: