On January $1,2024,$ Oriole Ltd$.,$ a public company, purchased $\backslash$$$546,000$ of $5-$year, $5\backslash \%$ bonds at par from Cheyenne Corporation. Interest is received semi$-$annually on July $1$ and January $1.$ Oriole purchased the bonds to earn interest. At December $31,2024,$ the bonds were trading at $102.$

$($a$)$

Correct Answer

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Prepare the journal entry to record the purchase of the bonds on January $1.($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.$)$

Date Account Titles

Debit

Credit

Jan. $1$ Investments at Amortized Cost

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$($b$)$

Prepare the journal entry to record the receipt of interest on July $1.($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.$)$

Date Account Titles

Debit

Credit

July $1$