View Policies Current Attempt in Progress On January 1, 2020, Bramble Company purchased $390,000, 8% bonds of Aguirre Co. for $359,884. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Bramble Company uses the effective interest method to amortize discount or premium. On January 1, 2022, Bramble Company sold the bonds for $361,654 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 amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Debit Credit Date Account Titles and Explanation Jan. 1. 2020