Held-to-Maturity Securities and Amortization of a Discount

On January 1, 2013, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2016, and are being held to maturity.

Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the straight-line method of amortization. If required, round your answers to the nearest cent. For compound entries, if an amount box does not require an entry, leave it blank.

2013	investment in held-to-maturity debt securities	$?????
Jan 1	cash		$?????
June 30	cash	$?????
	investment in held-to-maturity debt securities	$?????
	interest income		$?????
Dec 31	cash	$?????
	investment in held-to-maturity debt securities	$?????
	interest income		$?????

Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the effective interest method of amortization. If required, round your answers to the nearest cent. For compound entries, if an amount box does not require an entry, leave it blank.

2013	investment in held-to-maturity debt securities	$?????
Jan 1	cash		$?????
June 30	cash	$?????
	investment in held-to-maturity debt securities	$?????
	interest income		$?????
Dec 31	cash	$?????
	investment in held-to-maturity debt securities	$?????
	interest income		$?????