question 1

Concord Company purchased, on January 1,2020 , as a held-to-maturity investment, $70,000 of the 8%,5-year bonds of Chester Corporation for $64,692, which provides an 10% return. Prepare Concord's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit accoun Entry" for the account titles and enter 0 for the amounts.)