On January 1, 2017, Indigo Company purchased 8% bonds having a maturity value of $240,000, for $260,219.71. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Indigo Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.1. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e. g. 2,525.25. 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 0 for the amounts.)Date Account Titles and Explanation Debit CreditJan. 1, 2017 2. Prepare a bond amortization schedule. (Round answers to 2 decimal places, e. g. 2,525.25.)Schedule of Interest Revenue and Bond Premium AmortizationEffective-Interest MethodDate Cash Received Interest Revenue Premium Amortized Carrying Amount of Bonds1/1/17 $ $ $ $1/1/18 1/1/19 1/1/20 1/1/21 1/1/22