On January $1,2025,$ Blossom Company purchased $$340,000,8\%$ bonds of Aguirre Co$.$ for $$313,745.$ The bonds were purchased to

yield $10\%$ interest. Interest is payable semiannually on July $1$ and January $1.$ The bonds mature on January $1,2030.$ Blossom Company

uses the effective$-$interest method to amortize discount or premium. On January $1,2027,$ Blossom Company sold the bonds for

$$315,215$ after receiving interest to meet its liquidity needs.

$($a$)$

Your answer is correct.

Prepare the journal entry to record the purchase of bonds on January $1.$ Assume that the bonds are classified as available$-$for$-$sale.

$($List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no

entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

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List of Accounts

$($b$)$

Prepare the amortization schedule for the bonds. $($Round answers to $0$ decimal places, e$.$g$.1,250.)$