On January $1,$ Ralston Corporation Issues $$800,000$ of $8\%$ bonds, due in $10$ years, with Interest payable semlannually on June $30$ and

December $31$ each year. Price Investment Company purchases all of the bonds and classifies them as avallable$-$for$-$sale.

Assuming the market interest rate on the Issue date is $9\%,$ Price will purchase the bonds for $$747,968.$

Required:

Complete the first three rows of an amortization table for Price.

Record the purchase of the bonds by Price on January $1$ and the recelpt of the first two semlannual Interest payments on June $30$

and December $31.$

Assume the falr value of the bonds equals $$750,000$ on December $31.$ Record any necessary falr value adjusting entry.

Calculate net Income and comprehensive Income. Assume the company has sales revenue of $$2,600,000$ and operating expenses

of $$1,400,000.$

Complete this question by entering your answers in the tabs below.

Required $3$

Assume the fair value of the bonds equals $$750,000$ on December $31.$ Record any necessary fair value adjusting entry. $($If no entry is

required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

Record any necessary fair value adjusting entry.

Note: Enter debits before credits.