On 1/1/2012 ABC company purchased $1,000,000 of 8%, 5 year XYZ Co. bonds. On the open Marcket the XYZ bonds sell for $980,000. Bonds were dated and were issued by XYZ Co. on January 2010. The bonds pay interest on Jan 1st and July 1st. The effective interest method is used.
Make any necessary entries for XYZ Co. as of 2012.