The Bradford Company issued 8% bonds, dated January 1, with a face amount of $60 million on January 1, 2013 to Saxton-Bose Corporation. The bonds mature on December 31, 2018 (6 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Required:

1.

Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2013.(Enter your answers in whole dollars. If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
January 01, 2013	Bond investment
	Cash

2.

Prepare the journal entry to record interest revenue on June 30, 2013 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
June 30, 2013	Cash
	Discount on bond investment

3.

Prepare the journal entry to record interest revenue on December 31, 2013 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
December 31, 2031	Cash
	Discount on bond investment