On January 1, 2015, Waters Corp. bought $25,000 of Violet Co.'s 9% ten-year bonds for $25,300 to yield 8%. The bonds pay interest annually and are classified as held-to-maturity.
Required:
Using the effective interest method, journalize the receipt of the interest and amortization at December 31, 2016.

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2015, Waters Corp. bought $25,000 of Violet Co.'s 9% ten-year bonds for $25,300 to yield 8%. The bonds pay interest annually and are classified as held-to-maturity.
Required:
Using the effective interest method, journalize the receipt of the interest and amortization at December 31, 2016.