On January 1,2020 pluto corp.acquired 8%, $100,000(face value) bonds of Uranus Ltd.to yeild 6%. The bonds were dated January 1,2020 and mature on December 31,2025, with interest payable each January 1.pluto intends to hold the bonus to maturity and will use the FV -NI model and the effective interest method of amortization of bond premium or discount.

Require:

Prepare the following entries in pluto's books:

a. Acquisition of bonds on January 1,2020

b. Year- end adjusting entry at December 31,2020

c. Receipt of the first interest payment on January 1,2021.

Round all values to nearest dollar