Prepare Krum Company's journal entries to record the following transactions involving its short-term investments in available-for-sale debt securities, all of which occurred during the current year.

1. On August 1, paid $70,000 cash to purchase Houtte's 11%, six-month debt securities ($70,000 principal), dated August 1.

2. On October 30, received a check from Houtte for 90 days' interest on the debt securities in transaction a.

Note: Use 360 days in a year. Do not round your intermediate calculations.