on december 31 2014 when the market interest rate is 6 percent an investor purchases 3387216

On December 31, 2014, when the market interest rate is 6 percent, an investor purchases $700,000 of Tennis Bubbles Ltd. 10-year, 5-percent bonds at issuance for $647,929. Interest is paid semi-annually. Assume that the investor plans to hold the investment to maturity. Disregard commissions. Required Prepare a schedule for amortizing the discount on the bond investment through December 31, 2015. The investor uses the effective-interest amortization method. Use Exhibit 15-4 on page 931 as a guide. Journalize the purchase on December 31, 2014, the first semiannual interest receipt on June 30, 2015, and the year-end interest receipt on December 31, 2015.


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