On January $1,2025,$ Concord Company purchased $$250,000,6\%$ bonds of Aguirre Co$.$ for $$229,722.$ The bonds were purchased to

yield $8\%$ interest. Interest is payable semiannually on July $1$ and January $1.$ The bonds mature on January $1,2030.$ Concord Company

uses the effective$-$interest method to amortize discount or premium. On January $1,2027,$ Concord Company sold the bonds for

$$231,233$ 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 $O$ for the amounts.$)$

Debit

Credit