On January 1, 2020, Skysong Company purchased $330,000, 8% bonds of Aguirre Co. for $304,517. The...

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On January 1, 2020, Skysong Company purchased $330,000, 8% bonds of Aguirre Co. for $304,517. 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. Skysong Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Skysong Company sold the bonds for $306,162 after receiving interest to meet its liquidity needs. 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 Account Titles and Explanation Jan. 1, 2020 Debt Investments Cash eTextbook and Media Debit 304517 Credit 304517 On January 1, 2020, Skysong Company purchased $330,000, 8% bonds of Aguirre Co. for $304,517. 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. Skysong Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Skysong Company sold the bonds for $306,162 after receiving interest to meet its liquidity needs. 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 Account Titles and Explanation Jan. 1, 2020 Debt Investments Cash eTextbook and Media Debit 304517 Credit 304517