On January 1, 2025, Sage Company purchased 8% bonds having a maturity value of $240,000 for $260,219.71. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Sage Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. (a) Your answer is correct. Prepare the journal entry at the date of the bond purchase. (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 O for the amounts. Round answers to 2 decimal places, e.g. 1,225.25.)

On January 1, 2025. Sage Company purchased 8% bonds having a maturity value of $240,000 for $260,219.71. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Sage Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. (a) Your answer is correct. Prepare the journal entry at the date of the bond purchase. (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. Round answers to 2 decimal places, e.3. 1,225.25.)