Please make the response detailed and easy to understand, thank you

On January 1, 2019, Pumpkin Company purchased $300,000 of Colada Company 5% bonds, at a time when the market rate was 6%. The bonds mature on December 31, 2023, and pay interest semiannually on July 1 and January 1. Pumpkin plans to and has the ability to hold the bonds until maturity. Assume that Pumpkin uses the effective interest method to amortize any premium or discount on investments in bonds. The companys fiscal year ends on June 30. On June 30, 2019, the bonds are quoted at 98.

1. Prepare the entry to adjust the investment to fair value on June 30, 2019, if applicable. If it is not applicable explain why.

2. Indicate the accounts and the dollar amounts that should be reported from the above entries on the income statement for the six months ended June 30, 2019.

3. Indicate the accounts and the dollar amounts that should be reported from the above entries on the classified balance sheet (which distinguishes current from noncurrent) as of June 30, 2019.