Pearl Company invests $$8,900,000$ in $5\%$ fixed rate corporate bonds on January $1,2025.$ All the bonds are classified as available$-$for$-$

sale and are purchased at par. At year$-$end, market interest rates have declined, and the fair value of the bonds is now $$9,487,000.$

Interest is paid on January $1.$

Prepare journal entries for Pearl Company to $($a$)$ record the transactions related to these bonds in $2025,$ assuming Pearl does not elect

the fair option; and $($b$)$ record the transactions related to these bonds in $2025,$ assuming that Pearl Company elects the fair value

option to account for these bonds. $($List all debit entries before credit entries. 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 titles and enter $0$ for the amounts. Record journal

entries in the order presented in the problem.$)$