Question: On January 1 , 2 0 2 0 , Sweet Company purchased $ 2 6 0 , 0 0 0 , 6 % bonds of

On January 1,2020, Sweet Company purchased $260,000,6%
bonds of Aguirre Co. for $238,911. The bonds were purchased to
yield8% interest. Interest is payable semiannually on July 1
and January 1. The bonds mature on January 1,2025. Sweet Company
uses the effective-interest method to amortize discount or premium.
On January 1,2022, Sweet Company sold the bonds for
$240,370after receiving interest to meet its liquidity
needs.(a)DateAccount Titles and ExplanationDebitCredit

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