Pronghorn Corporation purchased on January 1,2025, as a held-to-maturity investment, $46,000 of the10%,4-year bonds of Harrison, Inc. for $49,097, which provides a8% return. The bonds pay interest semiannually.

 Pronghorn Corporation purchased on January 1,2025, as a held-to-maturity investment, $46,000 of the10%,4-year bonds of Harrison, Inc. for $49,097, which provides a8% return. The bonds pay interest semiannually.
Prepare Pronghorn's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization.

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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