On January 1, 2010, Buster, Inc.bought $50, 000 of 10% ten-year bonds of Brown Co.for $56, 795 to yield 8% annually.The bonds pay interest semiannually and are classified as held to maturity.Interest is paid on June 30 and December 31.
Required:
Using the effective interest method, journalize the receipt of the interest and amortization at December 31, 2010.

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The Answer of On January 1, 2010, Buster, Inc.bought $50, 000 of 10% ten-year bonds of Brown Co.for $56, 795 to yield 8% annually.The bonds pay interest semiannually and are classified as held to maturity.Interest is paid on June 30 and December 31.
Required:
Using the effective interest method, journalize the receipt of the interest and amortization at December 31, 2010.