South Company issued $10-$year, $10\%$ bonds with a par value of $$500,000$ on December $31,2006$ for $$700,000.$ Interest is paid semiannually on June $30$ and December $31.$ On July $1,2014$ $$300,000$ of the par value bonds were purchased by Prince Company for $$315,000.$ Do not use a premium account on Prince.

$1.$ In parallel columns for the issuer and investor $($as a long term investment$)$ give all journal entries for July $1,2014$ and December $31,2014.$ Assume the accounting period for each company ends on December $31.$ Use straight line amortization.

$2.$ Compute the investment in Bonds account Balance at December $31,2014.$