Prestige Company purchased bonds of Progressive Enterprises on July $1,2023.$ The bonds

marks pay interest semi$-$annually, on January $1$ and July $31$ of each year. Prestige has a year end of

December $31.$ Other information pertaining to the investment follows:

Coupon rate for the Progressive bonds

Effective interest rate of Progressive Bonds on July $1,2023$

Face value of bonds purchased

Maturity date of bonds

On July $2,2025,$ Prestige Company sold this investment at the following

rate:

Prestige Company follows ASPE and accounts for this investment using the amortized cost

method and the effective interest method.

Required:

Calculate the amount paid by Prestige Company to purchase the bond

investment. $(2$ marks$)$

Prepare an amortization schedule for Prestige Company's bond invesment for

the first $4$ payments. $(2$ marks$)$

Prepare the journal entries required by Prestige to account for the bond

investment on each of the following dates:

$($a$)$ July $1,2023(0\mathrm{.}5$ marks$)$

$($b$)$ December $31,2023(1\mathrm{.}5$ marks$)$

$($c$)$ July $1,2024(1\mathrm{.}5$ marks$)$

$($d$)$ July $2,2025(2\mathrm{.}5$ marks$)$