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Brief Exercise 12-1 (Static) Securities held-to-maturity; bond investment; effective interest [LO12-1, LO122] Lance Brothers Enterprises...

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Brief Exercise 12-1 (Static) Securities held-to-maturity; bond investment; effective interest [LO12-1, LO122] Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1 , on July 1, 2024, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The morket interest rate (yield) was 4% for bonds of similar risk and maturity. Lance Brothers poid $600,000 for the investment in bonds and will recelve interest semiannually on June 30 and December 31 Prepare the journal entries (o) to record Lance Brothers" investment in the bonds on July 1, 2024, and (b) to record interest on December 31,2024 , at the effective (market) rate. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field

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