Current Attempt in Progress

On January $1,2025,$ Crane Company purchased $$290,000,6\%$ bonds of Aguirre Co$.$ for $$266,477.$ The bonds were purchased to yield $8\%$ interest. Interest is payable semiannually on July $1$ and January $1.$ The bonds mature on January $1,2030.$ Crane Company uses the effective$-$interest method to amortize discount or premium. On January $1,2027,$ Crane Company sold the bonds for $$267,985$ after receiving interest to meet its liquidity needs.

$($a$)$

Prepare the journal entry to record the purchase of bonds on January $1.$ Assume that the bonds are classified as available$-$for$-$sale. $($List debit entry before credit entry. 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.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1,$

$2025$