On January 1, 2015, ATTS organization purchased 12% bonds having a maturity value of 500,000 USD, for 537,907.40 USD. The bonds provide a yield of 10%. The maturity date is January 1, 2020, with interest receivable each year, December 31st. Company chooses business model to hold these bonds to collect contractual cash flows.

1. Prepare bond amortization schedule. 2. Prepare Journal entries for the purchase of bonds, interest receipt at 31.12.2015 and 31.12.2016.