uayside Limited acquired 6%, $ 100,000 (face value) bonds of Summerside Incorporated on January 1, 2021, to yield 8%. The bonds were dated January 1, 2021, and mature on December 31, 2026, with interest payable each January 1. Quayside Limited intends to hold the bonds to maturity and will use the FV–NI model and the effective-interest method of amortization of bond premium or discount. Required Prepare the following journal entries in good form for Quayside Limited’s books: a) Acquisition of bonds.  b) Adjusting entry on December 31, 2021.  c) Interest receipt on January 1, 2022.

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