On July 1, 2021, Larkspur Inc., a public company, purchased $470,000 of Pronghorn Corp. 10-year, 3% bonds for $431,574 to earn interest. The bonds had a market interest rate of 4%. The bonds pay interest semi-annually on January 1 and July 1. Larkspur Inc. has a December 31 year end. At December 31, 2021, the bonds are trading at 96.

3.Record the receipt and payment of the first interest payment on January 1, 2022, for Larkspur Inc., and Pronghorn Corp