Bridgeport Corporation purchased $63,900 of 4-year, 7% bonds of Hu Inc. for $59,689 to yield an 9% return, and classified the purchase as an amortized cost method investment. The bonds pay interest semi-annually.

Assuming Bridgeport Corp applies ASPE and has chosen the method of discount amortization, prepare the two entries

To record collection of semi annual interest

Dr Cash

Dr Bond invest. at amortization

Cr Interest Income

To record collection of semi annual interest

Dr Cash

Dr Bond invest. at amortization

Cr Interest Income

Assuming Bridgeport applies ASPE and has chosen the straight-line method of discount amortization, prepare the same three entries requested above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit V Bond Investment at Amort 59689 Cash 59689 (To record purchase of bond investment) Cash 2237 X Bond Investment at Amort 702 x Interest Income 2939 (To record collection of semi-annual interest) v Cash 2237 x Bond Investment at Amort 702 Interest Income 2939 (To record collection of semi-annual interest)