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Problem 2: On 1/01/Yr1, Patton Company paid $846,226 to purchase $900,000 10 % bonds of Scott Company. The bonds pay interest each December 31. The

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Problem 2: On 1/01/Yr1, Patton Company paid $846,226 to purchase $900,000 10 % bonds of Scott Company. The bonds pay interest each December 31. The effective yield on the bonds is 11 %. Patton Company uses the effective- interest method and plans to hold these bonds to maturity. Prepare the journal entry for the receipt of interest at 12/31/Yr1

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