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On January 1,2023, Blue Spruce Limited paid $592,170.15 for 1086 bonds with a maturity value of $570,000. The bonds provide the bondholders with a 9%

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On January 1,2023, Blue Spruce Limited paid $592,170.15 for 1086 bonds with a maturity value of $570,000. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2023, and mature con January 1, 2028, with interest recelvable on December 31 of each year. Bue Spruce accounts for the bonds using the amortized cost approach, applies ASPEusing the effective interest method, and has a December 31 year end. (a) Prepare the journal entry to record the bond purchase. (Credt occount titles ore outomaticaliy indented when the anount is entered. Do not indent monually, If no entry is required, select "No Entry" for the account wides and enter Ofor the amounts. List debit entry before crefle entry Round answers to 2 declimaf ploces, es 52.75 ) On January 1,2023 , Martinez Limited paid $521,770.20 for 12% bonds with a maturity value of $485,000. The bonds provide the bondhoiders with a 10\% yield. They are dated January 1, 2023, and mature on January 1, 2028, with interest receivable on December 31 of each year. Martinez applies ASPE using the effective interest method, and has a December 31 year end. Assume that Martinez hopes to make a gain on the bonds as interest rates are eqpected to fall. Martinez accounts for the bonds at fair value with changes in value taken to net income, and separately recognizes and reports interest income. The fair value of the bonds at December 31 of each year end is as follows: (a) Prepare the journal entry at the date of the bond purchase. icredit account titics are automatically indented when the omount is entered. Do not indent monually, If no entry is required. select 'No Entry' for the occount titles and enter Ofor the amounts. List debit entry before credit entry. Round anwwers to 2 decimalploces, es 52.75 .)

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