On January 1, 2020, Sage Company purchased $ 500,000, 10% bonds of Aguirre Co. for $463,197. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Sage Company uses the effective-interest method to amortize discount or premium. On January 1, 2022. Sage Company sold the bands for $ 464,885 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. (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 for the amounts) Debit Credit Date Account Titles and Explanation 463197 Jan 1 2020 Debt Investments 463197 cash Schedule of Interest Revenue and Bond Discount Amortization Effective Interest Method Bonds Purchased to Yield Interest Receivable Or Cash Received Bond Discount Amortization Interest Revenue Carryl Amour Bond Date 1/11/20 5 0 $ 0 0 7/11/20 25000 1/1/21 25000 7/1/21 25000 1/1/22 25000 7/1/22 25000 1/1/23 25000 7/1/23 25000 25000 1/1/24 7/1/24 25000 1/1/25 25000 Total $