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On July 1, 2023, Riverbed Aggregates Ltd. purchased 6% bonds with a maturity value of $125,000 for $129,482. The bonds provide the bondholders with

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On July 1, 2023, Riverbed Aggregates Ltd. purchased 6% bonds with a maturity value of $125,000 for $129,482. The bonds provide the bondholders with a 5% yield. The bonds mature four years later, on July 1, 2027, with interest receivable June 30 and December 31 of each year. Riverbed uses the effective interest method to allocate unamortized discount or premium. The bonds are accounted for using the FV-OCI model with recycling. Riverbed has a calendar year end. The fair value of the bonds at December 31, 2023 and 2024, was $129,173 and $127,762, respectively. Assume fair value adjustments are recorded at year end only. Immediately after collecting interest on December 31, 2024, the bonds were sold for $127.762. (a) Prepare the journal entry at the date of the bond purchase. (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 O for the amounts. List debit entry before credit entry. Round answers to O decimal places, e.g. 5,275.) Prepare a bond amortization schedule to December 31, 2024. (Round answers to O decimal places, e.g. 5,275.) Schedule of Interest Income and Bond Premium Amortization Effective-Interest Method Date Cash Received July 1. 2023 Dec. 31, $ $ 2023 June 30, 2024 Dec. 31 Interest Income Premium Amortized Amortized Costi Date Cash Received Interest Income Premium Amortized July 1, 2023 Dec. 31. $ $ 2023 June 30. 2024 Dec. 31, 2024 $ Amortized Costi

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