Bond investment Disocnt Amortization Schedule - Tudor Company acquired $500,000 of Carr Corporation bonds for $487,706.69 on January 1, 2018. The bonds carry an 11% stated interest rate, pay interest semiannually on January 1 and July 1, were issued to yieled 12%, and are due January 1, 2021.

1. Prepare an investment interest income and discount amorization schedule using the:

a. Straight-line method

b. effective interest mehtod.

2. Prepare the July 1, 2020, journal entries to record the interest income under both methods.