On January 1, 2009, Rupar Retailers puschased $100,000 of Anand Company bonds at a discount of $5,000. The Anand bonds pay 6% interest but were purchased when the market interest rate was 7% for bonds of similar risk and maturity. The bonds pay interest semi-annually on Jan 1 and July 1 of each year. Rupar accounts ofr the bonds as a held-to-maturity investment, and uses the effective interest method. In Rupar's December 31, 2001 journal entry to record the second period of interest, Rupar would record a credit to interest revenue of:
Required:
Prepare all of the journal entries that would be recorded by Rupar during 2009 relative to the Anand bond investment.