ools View Docu Problem 17-02 On January 1, 2020, Flint Company purchased $440,000, 10% bonds of Aguirre Co. for $407,614. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Flint Company uses the effective interest method to amortize discount or premium. On January 1, 2022, Flint Company sold the bonds for $409,094 after receiving interest to meet its liquidity needs. Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available for sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account thes and enter for the amounts.) Account Titles and Explanation Debit Credit Date Jan. 1, 2020 Prepare the amortization schedule for the bonds. (Round answers to decimal places, e.. 1,250.) Schedule of Interest Reverse and Bond Discount Amortiration Effective interest Method Bonds Purchased to Yield Interest Receivable Bond Or Interest Discount Cash Received Revenue Amortization Carrying Amount of Bonds Date 1/1/20 7/1/20 1/1/21 7/1/21 1/1/22 1/1/23 Type here to search Word 7/1/23 1/1/24 7/1/24 1/1/25 Total Don't show me this message again for the assignment Show Ust of Accounts Link to Text (c) Prepare the journal entries to record the semiannual interest on (1) July 1, 2020, and (2) December 31, 2020, (d) If the fair value of Aguirre bonds is $411,094 on December 31, 2021, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on December 31, 2020, is a debit of $3,170.) (e) Prepare the journal entry to record the sale of the bonds on January 1, 2022. (Round answers to o decimal places, .. 2,500. Credit account tites are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit 10 (1) July 1, 2020 T 2/25/2020 (2) Dec 31, 2020 Los Dec 31, 2021 End of document