Uptown Financial purchased $100,000 of 8% bonds of Gamedrop Inc. on January 1, 2025, at a discount, paying, $92,278. The bonds mature January 1, 2030, and yield 10%. Interest is payable each July 1 and January 1. QUESTION What entry should Uptown Financial use to record the purchase of the bonds from Gamedrop, assuming Uptown intends to hold the bonds to maturity? SOLUTION Uptown Financial records the investment as followsUptowns held-to-maturity security was purchased at a discount because it was only paying 8% when the market rate was 10%. Uptown uses a Debt Investments account to record the cost of the debt security (often referred to as the net method andThis schedule shows the effect of the discount amortization on the interest revenue that Uptown records for its investment in Gamedrop bonds. QUESTIONS (a) How should Uptown Financial record the first semiannual interest payment on July 1, 2025? (b) How should Uptown Financial record the accrual of interest and amortization of the bond discount on December 31, 2025? (c) How should Uptown Financial report this information on its balance sheet at December 31, 2025, and its income statement for 2025