On March 1, 2008, Gordon Corporation purchases \(\$ 50,000\) of \(10 \%\) bonds of PUA-Tech Corporation, due in \(9 \frac{1}{4}\) years. The bonds were purchased at a price of \(\$ 40,000\) plus interest of \(\$ 1,250(\$ 50,000 \times 10 \% \times 3 / 12)\) accrued from December 1, 2007, the date of the last semiannual interest payment.

(a) Journalize the purchase of the bonds plus accrued interest.

(b) Journalize the entry to record the amortization of the discount on December 31.

objs. 2, 3