On January 1, 2017, Garcia Company acquired bonds with a face value of $80,000 for $76,066. The bonds carry a stated interest rate of 8% and an effective yield of 10%. Interest is payable on June 30 and December 31, the bonds mature on December 31, 2018, and they are classified as held-to-maturity.
Required:
Prepare the journal entries necessary by Garcia to record the purchase of bonds and the first two interest receipts using the effective interest method of amortization. Round to the nearest dollar.

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The Answer of On January 1, 2017, Garcia Company acquired bonds with a face value of $80,000 for $76,066. The bonds carry a stated interest rate of 8% and an effective yield of 10%. Interest is payable on June 30 and December 31, the bonds mature on December 31, 2018, and they are classified as held-to-maturity.
Required:
Prepare the journal entries necessary by Garcia to record the purchase of bonds and the first two interest receipts using the effective interest method of amortization. Round to the nearest dollar.

On January 1, 2017, Garcia Company Acquired Bonds with a Face