Pharoah Company purchased, on January $1,2025,$ as an available$-$for$-$sale security $570,000$ of the $5\%,5-$year bonds of Runner Corporation for $$64,826$ which provides an $11\%$ return

Prepare Pharosh's journal entries for $($a$)$ the purchase of the investment. $($b$)$ the receipt of annual interest and discount amortization. and $($c$)$ the year$-$end fair value adjustment. $($Assume a zero balance in the fair Value Adjustment account$)$ The bonds have a year$-$end fair value of $$66,500.$ Assume effective$-$interest amortization is used $($Wist ail debit entries betore credit entries. Creditaccount titles are eriter O for the amounts, Round cnowers to Odecimal places eg $1224$

No$.$

Date

$($a$)$

$($b$)$

$($c$)$

Account Titles and Explanation

Debit