Prepare Krum Co.'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.

a.On August 1, paid $62,000 cash to purchase Houtte's 9%, six-month debt securities ($62,000 principal), dated August 1.

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