QUESTION 1 (Debt Investments) On January 1, 2018, Roosevelt Company purchased 12% bonds having a maturity value of $500,000 for $537,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2018, and mature January 1, 2023, with interest receivable December 31 of each year. The fair value of the bonds at December 31 of 2018 is $534,200 and 2019 is $515,000. SITUATION 1 Roosevelt's business model is to hold these bonds to collect contractual cash flow and fair value option was not elected. (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare a bond amortization schedule. (c) Prepare the journal entry to record the interest received and the amortization for 2018. (d)Prepare the journal entry to record the interest received and the amortization for 2019. (e) Prepare the financial statements presentation of the items related to this debt investment for 2019. QUESTION 1 SITUATION 1 Requirement a Requirement b Date Cash Received Bond Amortization Schedule Interest Revenue Amortized Amount Carrying Amount of Bonds 1/1/2018 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 Requirement c Requirement d Requirement e 2019 Statement of Financial Position Long-Term Investments - Debt Investments 2019 Income Statement Other Income and Expense Interest Revenue