--------------------- QUESTION 2 ------------------

Appling Enterprises issued 8\% bonds with a face amount of $460,000 on January 1, 2024. - The bonds sold for $417,676 and mature in 2043 (20 years). - For bonds of similar risk and maturity the market yield was 9%. - Interest is paid semiannually on June 30 and December 31. - Appling determines interest expense at the effective rate. - Appling elected the option to report these bonds at their fair value. - The fair values of the bonds at the end of each quarter during 2024 as determined by their market values in the over-the-counter market were the following: General (risk-free) interest rates did not change during 2024. Required: (Note: The term "comprehensive income" below includes BOTH items included in "regular" Net Income and items included in Comprehensive Net Income.) 1. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements? 2. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? 3. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? 4. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements? Note: For all requirements, do not round your intermediate calculations. Round your final answers to the nearest whole dollar. \begin{tabular}{|l|l|l|} \hline 1. Appling's comprehensive income will be & & by \\ \hline 2. Appling's comprehensive income will be & & by \\ \hline 3. Appling's comprehensive income will be & & by \\ \hline 4. Appling's comprehensive income will be & & by \\ \hline \end{tabular} The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2023, included 14% bonds having a face amount of $15 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 16%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. Interest was accrued and expensed on December 31, 2023. On July 1, 2024, Twin Digital retired the bonds at 102 ( $15.3 million) before their scheduled maturity. Required: 1. \& 2. Prepare the necessary journal entries by Twin Digital on July 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars