On January 1, 2017, Brewster's, Inc. bought $50,000 of 10% ten-year bonds of Chocolate 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, 2017.

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The Answer of On January 1, 2017, Brewster's, Inc. bought $50,000 of 10% ten-year bonds of Chocolate 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, 2017.