On January 1, 2025, Martinez Company purchased 11% bonds having a maturity value of $314,000 for $338,426.53. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Martinez Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2025 $336,200 2026 2028 $323,500 $322,500 2029 $314,000 2027 $321,500 (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2025. (c) Prepare the journal entry to record the recognition of fair value for 2026.

On Janyary 1, 2025. Martine2 Compary purchased 11 bo bonds having a maturity value of $314.000 for $338,426.53. The bonds provide the boncholbers with a 9% yitld. They are dated January 1, 2025, and mature Janaary 1. 2030, with interest recelved on January 1 of each year. Martinez Company uses the effective-interest method to allocate unamortized discount or premium. The bonds areclassified as wailable-tor-sale category. The fair value of the bends at December 31 of each year-end is as follows. (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest revenue and recognition of fair yalue for 2025 . (c) Prepare the journal entry to record the recognition of fair value for 2026 Aht all debit entries before credt entriex Credit occount tieles are outomaticoly indented when amount is entered. Do not indent manually, if no entry is requird, select "No Entry" for the occount tieles and enter 0 for the aniounts. Round anowers to 2 decimol places, e. 1225 . 25 .)