XYZ invested in the bonds of ABC Co. The bonds had a maturity of $80,000 due in 10 years, paying annual interest of 6%, semiannually on June 30 and Dec 31. The market rate was 8%. XYZ paid $69,128.

Interest recieved Interest Revenue Amortization Carrying Value $69,128

1

2

3

4

Fill in the above chart to account for the held to maturity investment and prepare journal entries for the amortization and receipt of interest:

June 30, Year 1

Dec 31, Year 2

*please show steps to answers.