On January 1, 2020, Cullumber Company purchased $380,000, 8% bonds of Aguirre Co. for $350,656. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Cullumber Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Cullumber Company sold the bonds for $352,236 after receiving interest to meet its liquidity needs. (a) Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available-for-sale. (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 O for the amounts.) Date Jan. 1, 2020 Account Titles and Explanation Debit Credit

On January 1,2020, Cullumber Company purchased $380,000,8% bonds of Aguirre Co, for $350,656. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025, Cullumber Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Cullumber Company sold the bonds for $352,236 after receiving interest to meet its liquidity needs. (a) Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available-for-sale: (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 tities and enter Ofor the amounts.)