Pharaoh Company purchased on January 1,2017 as an available for
sale security, $89,000 of the 8%, 5 year bonds of Chester
Corporation which provides an 10% return. Prepare Pahroahs’s
journal entries for (a) the purchase of the investment (b) receipt
of annual interest and discount amortization, and (c) the year end
fair value adjustment(Assumr a zero balance in the fair value
adjustment account) the bonds have a year end fair value of
$84,550