On January 01, 2020 (the issue date of the bonds), ACME Incorporated purchased bonds to yield an 6% return and classified the purchase as an amortized cost method investment. The bonds have a $800,000 face value, five-year term, and a 8% coupon rate paid semi-annually on June 30 and December 31. ACME has a December 31 year end and follows ASPE.

Required:

Prepare the required journal entry to record the purchase of bonds. Round your final answer to the nearest dollar and show calculations below the journal entry. (4 marks)