On July 1, 2021 Bentley Company paid $192,980 for 4-year, 5% Citigroup bonds with a face value of $200,000. The market rate of interest for bonds of similar structure and risk was 6%. Citigroup bonds pay interest semi-annually each June 30 and December 31. Bentley classified the investment as trading securities. On December 31, 2021 the fair value of the bonds held by Bentley was $190,000. On July 1, 2022 Bentley sold the bonds for $195,000.

Bentley’s journal entries

1. Purchase on July 1, 2021

2. Show the amortization table up to and including December 31, 2022

Date	Interest payment	Interest revenue	Amortized	Carrying value
07/01/21
12/31/21
06/30/22

3. Entries related to these bonds on December 31, 2021

a) Receipt of the first interest payment on December 31, 2021

b) Adjustment to fair value at December 31, 2021

4. Sale of bonds on July 1, 2022