Thank you!

On January 1, 2013, Hi and Lois Company purchased 13% bonds, having a maturity value of $508,900, for $546,516.37. The bonds provide the bondholders with a 11% yield. They are dated January 1, 2013, and mature January 1, 2018, with interest receivable December 31 of each year. Hi and Lois Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

2013		$542,866		2016		$518,100
2014		$516,100		2017		$508,900
2015		$513,300

(a)		Prepare the journal entry at the date of the bond purchase.
(b)		Prepare the journal entries to record the interest received and recognition of fair value for 2013.
(c)		Prepare the journal entry to record the recognition of fair value for 2014.

(Round answers to decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is e the account titles and enter 0 for the amounts. Date Account Titles and Explanation Debit Credit No. (a) Jan. 1, 2013 (b) Dec. 31, 2013 (To record interest received) Dec. 31, 2013 (c) Dec. 31, 2014