On July 1, 2020, Smoky Concrete Ltd. purchased 4% bonds having a maturity value of $51,000 for $49,595.43. The bonds provide the bondholders with a 5% effective rate. The bonds mature July 1, 2023, with interest receivable June 30 and December 31 of each year. Smoky uses the effective interest method to allocate unamortized discount or premium. The bonds are accounted for using the FV-OCI model without recycling. Smoky has a calendar year end. The fair value of the bonds at December 31, 2020 was $50,052 Assume fair value adjustments are recorded at year end only. Immediately after collecting interest on July 1, 2021, the bonds were sold for $50,839.00. Assume that the bonds are the only investments held by Smoky Concrete Ltd. and ignore all income taxes. Instructions Round answers to 2 decimal places a. Prepare the journal entry at the date of the bond purchase b. Prepare all entries required on year-end from December 31, 2020 c. Prepare the collection of interest on July 1, 2021 d. Prepare the journal entries for the sale of the bonds on July 1, 2021 . v ev do tv