Question 1 --/50 View Policies Current Attempt in Progress On January 1, 2020, Marigold Company purchased $380,000,8% bonds of Aguirre Co. for $350,656. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Marigold Company uses the effective interest method to amortize discount or premium. On January 1, 2022, Marigold Company sold the bonds for $352,236 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 titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Jan 1, 2020 List of Accounts Prepare the amortization schedule for the bonds. (Round answers to decimal places, eg. 1,250.) Schedule of Interest Revenue and Bond Discount Amortization-Effective-Interest Method Bonds Purchased to Yield Bond Interest Discount Revenue Amortization Interest Receivable Or Cash Received Carrying Amount of Bonds Date 1/1/20 $ 7/1/20 1/1/21 7/1/21 1/1/22 7/1/22 1/1/23 7/1/23 1/1/24 7/1/24 1/1/25 Total 5 List of Accounts (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 $354,236 on December 31, 2021. prepare the necessary adjusting entry. (Assume the fair value adjustment balance on December 31, 2020, is a debit of $3,346.) le) Prepare the journal entry to record the sale of the bonds on January 1, 2022. (Round answers to decimal places, es 2,500. 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 tities and enter for the amounts) Account Titles and Explanation Debit Credit No. Date (c) (1) Jan 1, 2022 : (d) Dec 31, 2021 (e) Jan 1.2022 List of Accounts