Sheridan Company purchased, on January 1, 2025, as a held-to-maturity investment, $71,000of the8%,5-year bonds of Sipacore Corporation for $65,617, which provides an10% return.

 Sheridan Company purchased, on January 1, 2025, as a held-to-maturity investment, $71,000of the8%,5-year bonds of Sipacore Corporation for $65,617, which provides an10% return.
Prepare Sheridan's journal entries for (a) the purchase of the investment, and (13) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used.

 

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