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Wildhorse Company purchased, on January 1 , 2 0 2 5 , as a held - to - maturity investment, $ 8 7 , 0

Wildhorse Company purchased, on January 1,2025, as a held-to-maturity investment, $87,000 of the 9%,5-year bonds of Handley
Corporation for $80,569, which provides an 11% return.
Prepare Wildhorse'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. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g.1,225.)
No.
Date
Account Titles and Explanation
Debit
(a)
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