Adams Company owns 100% of the outstanding common stock of the Beam Company. Adams issued $800,000 of face value, 12%, 20-year bonds on January 1, 2010, for 700,000. The premium/discount is being amortized in a straight line basis. On January 1, 2015, Beam purchased all the bonds as an investment for $755,000.

Required: Prepare general journal entries on January 1, 2015 and December 31 2015 on the books of Beam to account for the purchase of the bonds.