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On January 1,2025, Teal Company purchased 10% bonds having a maturity value of $340.000 for $367,149.34. The bonds provide the bondholders with a 8% yield.

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On January 1,2025, Teal Company purchased 10% bonds having a maturity value of $340.000 for $367,149.34. The bonds provide the bondholders with a 8% yield. They are dated January 1,2025, and mature January 1, 2030 , with interest received on January 1 of each year. Teal Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classificd in the heid-to-maturity category. (a) Prepare the journal entry at the date of the bond purchase. Q List debit entry before credit entry. Credit account tities are automatically indented When amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter Ofor the amounts, Round answers to 2 decimal ploces, es. 1.225.25.)

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