Prepare Natura Co.’s journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year.
a. On June 15, paid $1,000 cash to purchase Remed’s 90-day short-term debt securities ($1,000 principal), dated June 15, that pay 10% interest.
b. On September 16, received a check from Remed in payment of the principal and 90 days’ interest on the debt securities purchased in part a.