ABC Company buys a bond as an available for sale security. The bond has a face

ABC Company buys a bond as an available for sale security. The bond has a face value of $100000 and matures in 10 years. The coupon is 6% and interest is paid
semiannually on July 1 and December 31. The market rate of interest is 4%. The bond was purchased on January 1 Year 1 for $116351.43. The carrying value of
the bond after amortization on Dec 31 Year 1 was $114992.03. The FMV of the bond was $113 925.00 on Dec 31 Year 1.

Record the entry for receipt of interest on July 1 Year 1. Show computations.

Make the appropriate adjusting journal entry for Dec 31 Year 1.

The carrying value of the bond after amortization on Dec 31 Year 2 was $113465. 49. The FMV of the bond on Dec 31 Year 2 was $$113 524.

Make the appropriate adjusting journal entry for Dec 31 Year 2.