On January 1, 2017, Bucket Company purchased as an investment a $1200, 6% bond for $900. Bucket plans to hold the bond until the maturity date of January 1, 2027. The bond pays interest on January 1 and July 1

The company's fiscal year ends on December 31 and it uses the straight-line amortization method for discounts and premiums. The journal entry on December 31, 2017 is:
A) debit Interest Receivable for $36, debit Held-to-Maturity Investment in Bond for $15 and credit Interest Revenue for $51.
B) debit Cash for $36 and credit Interest Revenue for $36.
C) debit Interest Receivable for $51, credit Held-to-Maturity Investment in Bonds for $15 and credit Interest Revenue for $36.
D) debit Held-to-Maturity Investment in Bonds for $36 and credit Interest Revenue for $36.

A
Explanation: A) Interest: $1200 × 6% × 1/2 = $36
Discount: $1200 - $900 = $300
Discount amortized: $300 ÷ 17 = 15