Sandy Sensations Purchases Twenty,$1,000,7%,10-Year Bonds Issued by Pizza Pier for $20,000

Essay

Sandy Sensations purchases twenty,$1,000,7%,10-year bonds issued by Pizza Pier for $20,000 on January 1,2012.The market interest rate for bonds of similar risk and maturity is 7%.Interest is received semiannually on June 30 and December 31.
1.Record the investment in bonds.
2.Record receipt of the first interest payment on June 30,2012.