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Question 13 (10 points) Carrying Art Interest Rective Interestem Dcount American Jan 1, 2020 $5,536,670 Dec 31, 2020 240.000 1776,034 136,834 5.573.510 Dec 31, 2021

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Question 13 (10 points) Carrying Art Interest Rective Interestem Dcount American Jan 1, 2020 $5,536,670 Dec 31, 2020 240.000 1776,034 136,834 5.573.510 Dec 31, 2021 240,000 27,676 34,676 5.612,186 The following schedule presents a comparation of noticed cost od nit value Dec. 2029 Des 31.2021 Amortired Cou 35.573.510 5.612,186 Fair Value 5,500,000 5.600.000 Bravo Corporation purchased $6,000,000 bonds at discount for $5,536,676 on Jan 1. 2020. Below is the amortization schedule and the comparison of amortized cost and fair value 1) Prepare the journal entry for the purchase of debt investment on Jan1, 2020. Put your JE in the first box. 2) Assuming the debt investment is classified as available-for-sale security, prepare the journal entries on Dec 31, 2020. Put your JE in the second box 3) Assuming the debt investment is classified as available-for-sale security, prepare the journal entries on Dec 31, 2021. Put your JE in the third box. Carrying Amt of Bonds $5,536,676 5,573,510 5,612,186 Interest Received Interest Revenue Discount Amortization Jan 1, 2020 Dec 31, 2020 $240,000 $276,834 $36,834 Dec 31, 2021 240,000 278,676 38,676 The following schedule presents a comparation of amortized cost and fair value Dec 31, 2020 Dec 31, 2021 Amortized Cost $5,573,510 5,612,186 Fair Value 5,500,000 5,600,000 Bravo Corporation purchased $6,000,000 bonds at discount for $5,536,676 on Jan 1, 2020. Below is the amortization schedule and the comparison of amortized cost and fair value. 1) Prepare the journal entry for the purchase of debt investment on Jan 1, 2020. Put your JE in the first box. 2) Assuming the debt investment is classified as available-for-sale security, prepare the journal entries on Dec 31, 2020. Put your JE in the second box. 3) Assuming the debt investment is classified as available-for-sale security, prepare the journal entries on Dec 31, 2021. Put your JE in the third box

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