On July $1,2025,$ Blossom Corporation purchased at par $6\%$ bonds having a maturity value of $$266,400.$ The bonds are dated July $1,$On January $1,2025,$ Pharoah Company purchased $5\%$ bonds, having a maturity value of $$570,000$ for $$488,989.$ The bonds provide

the bondholders with a $7\%$ yield. They are dated January $1,2025,$ and mature January $1,2035,$ with interest receivable June $30$ and

December $31$ of each year. Pharoah Company uses the effective$-$interest method to allocate unamortized discount or premium. The

bonds are classified as available$-$for$-$sale. 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.

$($b$)$ Prepare the journal entries to record the interest received and recognition of fair value for $2025.$

$($c$)$ Prepare the journal entry to record the recognition of fair value for $2026.$

$($Round answers to $0$ decimal places, e$.$g$.2,525.$ Credit account titles are automatically indented when the amount is entered. Do not indent

manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

No$.$

Date

$($a$)$

$($b$)$

$($b$)$

$($c$)$ Prepare the journal entry to record the recognition of fair value for $2026.$

$($a$)$

Account Titles and Explanation

Debit

$($a$)$

$$Presented below is information related to the purchases of common stock by Oriole Company during $2025.$

$($Assume a zero balance for any Fair Value Adjustment account at the beginning of $2025.)$

$($a$)$ What entry would Oriole make at December $31,2025,$ to record the investment in Arroyo Company stock if it chooses to

report this security using the fair value option?

$($b$)$ What entry would Oriole make at December $31,2025,$ to record the investments in the Lee and Woods corporations,

assuming that Oriole did not select the fair value option for these investments?

$($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If

no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$($a$)$

$($b$)$

$2025,$ and mature July $1,2030,$ with interest payable on July $1$ of each year. The bonds are classified in the held$-$to$-$maturity category,

and the company does not use reversing entries.

$($a$)$ Prepare the journal entry at the date of the bond purchase.

$($b$)$ Prepare the journal entry to record the interest earned and interest received for $2025.$

$($c$)$ Prepare the journal entries to record the interest earned and interest received for $2026.$

$($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry"

for the account titles and enter $0$ for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the

problem.$)$

Vo$.$

Date

Account Titles and Explanation

Debit

$($a$)$

$($b$)$

$($c$)$