QUESTION: On January 1, 2020, the company purchased $100,000, 10% bond investment at $92,790 due in 5 years, with interest payable annually on December 31. The company classifies this investment as Held-to-Maturity. The company adopt the Effective Interest Method (i.e. Market Interest Rate = 12%) to amortize any discount or premium. Prepare journal entries at the following dates. If no entry is required, write "No entry is required." January 1, 2020, Purchase of Bond Investment: December 31, 2020, the first annual receipts: December 31, 2020, the market (fair) value of the bond is $96.000