P16-5B + Link Back to Chapter 15 (Effective-Interest Amortization of Discount). On December 31, 20X1, when the market interest is 8%. Chase Bank purchases $500,000 of Michelin Corp., 7.4%, six-year bonds at issuance. The cost of this long-term bond investment is $486.123, and Chase Bank expects to hold the investment to maturity. Required Journalize the purchase on December 31, 20X1, the first semiannual interest receipt on June 30, 20X2, and the year-end interest receipt on December 31, 20X2. Chase Bank uses the effec- tive-interest amortization method. Prepare a schedule for amortizing the discount on bond investment through December 31, 20X2. Use Exhibit 15-4 as a guide.