On July 1, 2021, Larkspur Inc., a public company, purchased $360,000 of Blue Spruce Corp. 10-year, 4% bonds for $331,940 to earn interest. The bonds had a market interest rate of 5%. 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. Collapse question part (a) Correct answer. Your answer is correct. Assuming Larkspur Inc. purchased the bonds from Blue Spruce Corp., record the journal entries required on July 1 for Larkspur Inc., and Blue Spruce Corp. (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.) Larkspur (investor) Date Account Titles and Explanation Debit Credit July 1 Entry field with correct answer Investments at Amortized Cost Entry field with correct answer 331940 Entry field with correct answer Entry field with correct answer Cash Entry field with correct answer Entry field with correct answer 331940 (To record purchase of investment.) Blue Spruce (investee) Date Account Titles and Explanation Debit Credit July 1 Entry field with correct answer Cash Entry field with correct answer 331940 Entry field with correct answer Entry field with correct answer Bonds Payable Entry field with correct answer Entry field with correct answer 331940 (To record issuance of bonds payable.) SHOW ANSWER LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 6 of 15 used Collapse question part (b) Record any adjusting journal entries that are required at December 31 for Larkspur Inc., and Blue Spruce Corp. (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. Round answers to 0 decimal places, e.g. 5,275.) Larkspur (investor) Date Account Titles and Explanation Debit Credit Dec. 31 (To accrue interest revenue.) Blue Spruce (investee) Date Account Titles and Explanation Debit Credit Dec. 31 (To accrue interest expense