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On July 1, 2023, Blue Lid, purchased $208000 (par value) of Blossom's 8% bonds. Because the market rate was 9%, Blue purchased them for $185700.

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On July 1, 2023, Blue Lid, purchased $208000 (par value) of Blossom's 8% bonds. Because the market rate was 9%, Blue purchased them for $185700. The bonds pay interest semi annualy on December 31 and fune 30 . Pluc uses the amortized cost model and the effective interest method to recognize interest income on bond investments. Roundirg values to the nearest dollar (if necessary). the entry to recognize recelpt of the first interest payment on December 31,2023 will include a debit to Cash of 58357 credit to interest income of $8320 : credit to Interest Income of $8357. debit to Cash of $9360. Bridgeport Corp gave you the following information about its imvestment in Fahad Corp. shares purchased in May 2023 and accounted for using the FV-OCl method: (a) Prepare the adjusting journal entries needed on December 31,2023, 2024, and 2025. (Credit account tities are outomotically indented when the amount is entered. Do not indent manually If no entry is required, select "No Entry" for the occount titles and enter 0 for the amounts. Record entries in the order displayed in the problem statement. (ist all debit entries before credit entries)

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