On January 1, 2024, Ithaca Corporation purchases Cortland Incorporated bonds that have a face value of $250,000. The Cortland bonds have a stated interest rate of 8%. 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: Note: Use tables, Excel, or a financial calculator. (FV of $1,PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1 ) Required: 1-a. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2024 (ignoring brokerage fees). 1-b. Prepare a journal entry to record the purchase. 2. Prepare all appropriate journal entries related to the bond investment during 2024 , 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 2024 , 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. repare a journal entry to record the purchase. lote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your itermediate calculations and round your final answers to nearest whole number. \begin{tabular}{|c|c|l|c|c|} \hline No & Date & General Journal & Debit & Credit \\ \hline 1 & January 01, 2024 & Investment in bonds & & \\ \hline & & Discount on bond investment & & \\ \hline & & Cash & & \\ \hline 2 & June 30, 2024 & Cash & & \\ \hline & & Discount on bond investment & & \\ \hline & & Interest revenue & & \\ \hline & & & & \\ \hline 3 & June 30, 2024 & No journal entry required & & \\ \hline & & & & \\ \hline 4 & December 31, & Cash & & \\ \hline 2024 & Discount on bond investment & & \\ \hline & & Interest revenue & & \\ \hline & & & & \\ \hline \end{tabular} Journal entry worksheet Record the investment in bonds with a face value of $250,000, a stated interest rate of 8% and a market yield of 10%. The bonds pay interest semiannually. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the fair value adjustment when the market yield is 11%. Note: Enter debits before credits. Journal entry worksheet 1 Note: Enter debits before credits. Journal entry worksheet 1 2 Record the fair value adjustment when the market yield is 12%. Note: Enter debits before credits. On January 1, 2024, Ithaca Corporation purchases Cortland Incorporated bonds that have a face value of $250,000. The Cortland bonds have a stated interest rate of 8%. 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: Note: Use tables, Excel, or a financial calculator. (FV of $1,PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1 ) Required: 1-a. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2024 (ignoring brokerage fees). 1-b. Prepare a journal entry to record the purchase. 2. Prepare all appropriate journal entries related to the bond investment during 2024 , 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 2024 , 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. repare a journal entry to record the purchase. lote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your itermediate calculations and round your final answers to nearest whole number. \begin{tabular}{|c|c|l|c|c|} \hline No & Date & General Journal & Debit & Credit \\ \hline 1 & January 01, 2024 & Investment in bonds & & \\ \hline & & Discount on bond investment & & \\ \hline & & Cash & & \\ \hline 2 & June 30, 2024 & Cash & & \\ \hline & & Discount on bond investment & & \\ \hline & & Interest revenue & & \\ \hline & & & & \\ \hline 3 & June 30, 2024 & No journal entry required & & \\ \hline & & & & \\ \hline 4 & December 31, & Cash & & \\ \hline 2024 & Discount on bond investment & & \\ \hline & & Interest revenue & & \\ \hline & & & & \\ \hline \end{tabular} Journal entry worksheet Record the investment in bonds with a face value of $250,000, a stated interest rate of 8% and a market yield of 10%. The bonds pay interest semiannually. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the fair value adjustment when the market yield is 11%. Note: Enter debits before credits. Journal entry worksheet 1 Note: Enter debits before credits. Journal entry worksheet 1 2 Record the fair value adjustment when the market yield is 12%. Note: Enter debits before credits
