On July 1, 2020, Sabit Company, a private company, decided to buy $289,000, 5% 11-year bonds at par, issued by a private company in the US. The semi-annual payments are made on January 1 and July 1. The company intends to sell these bonds within the next six to nine months. Sabit Company records the bonds using the fair value through net income method, in compliance with ASPE. Sabit Company has a year-end of September 30.

Required a) Record acquisition of the bonds. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number.

Date	Account Title and Explanation	Debit	Credit
Jul 1	Answer	Answer
	Answer		Answer
	To record acquisition of bonds at par

b) Assume that on September 30, 2020, the market value of the bonds decreased significantly to $260,100 due to a change of market interest rate. Prepare the journal entry to make the adjustment on this date. You do not need to record the interest accrued for this question.

Date	Account Title and Explanation	Debit	Credit
Sep 30	Answer	Answer
	Answer		Answer
	To record fair value adjustment loss