Question: - - Current Attempt in Progress On January 1, 2025, Sheridan Company purchased $260,000, 6% bonds of Sunny Co. for $271,378. The bonds were purchased

- - Current Attempt in Progress On January 1, 2025, Sheridan

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Current Attempt in Progress On January 1, 2025, Sheridan Company purchased $260,000, 6\% bonds of Sunny Co. for $271,378. The bonds were purchased to yield 5% interest. Interest is payable semiannually on July 1 and January 1 . The bonds mature on January 1,2030 . Sheridan Company uses the effective-interest method to amortize discount or premium. On January 1, 2027, Sheridan Company sold the bonds for $266,378 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. (Credit account titles are automatically indented when the 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. List debit entry before credit entry.) Attempts: 0 of 1 used

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