Required information

[The following information applies to the questions displayed below.]

On January 1, 2024, Rain Technology purchased at par $76,000, 4 percent, bonds of Lightyear Services Company. The bonds pay interest quarterly on March 31, June 30, September 30, and December 31. Rain Technologys year ends on December 31. The following information applies to the fair value of Lightyear Services bonds:

	Bond Price
12/31/2024	$74,000
12/31/2025	83,000
12/31/2026	78,000

Rain Technology sold the bonds on July 14, 2027, for $81,000.

Required:

1. Prepare Rain Technologys entry to record interest received on March 31, 2024.

2. Assuming that Rain purchased the bonds as trading securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest.

3. Assuming that Rain purchased the bonds as available-for-sale securities, prepare journal entries at the end of each year and on the date of sale. Ignore interest.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.