Accounting for Debt securities

2019 Jan. Purchased $750,000 face value of Sphere, Inc.'s 9 percent bonds at 102 plus a brokerage commission of $900. The bonds pay interest on June 30 and December 31 and mature in 10 years. Burt expects to hold the bonds to maturity. June Received the semiannual interest payment on the Sphere bonds and amortized the bond premium for six months. Burt uses the straight- 30 line method to amortize bond discounts and premiums. 2028 Dec. 31 Received the semiannual interest payment on the Sphere bonds and amortized the bond premium for six months Dec. 31 Received the principal amount in cash on maturity date of the Sphere bonds. Record the transactions and adjustments of Burt Company using journal entries. General Journal Date Description Debit Credit 1/1/2019 Bond investment held to maturity (Sphere) . 765,900 O Cash O 765,900 To record purchase of debt securities. 6/30/2019 Cash 33,750 Bond investment held to maturity (Sphere) 0 Bond Interest income O To record receipt of interest income 12/31/2028 Cash 33,750 Bond investment held to maturity (Sphere) Bond interest income O To record receipt of interest income 12/31/2028 Cash 750,000 0 Bond investment held to maturity (Sphere) o 750,000 To record redemption of bonds at maturity