Bray Co. Acquired $30,000 oh Honey Sales Co's 7% bonds, interest payable semiannually, bonds maturing in five years. The bonds were acquired at $32,626, a price to return approximately 5%. Prepare tables to show the periodic adjustments to the investment account and the annual bond earnings, assuming adjustment by each of the following methods: (a) the straight-line method and (b) the effective- interest method. Assuming the use of the effective-interest method, prepare journal entries for each company for the first year.