On January 1, 2025, Sandhill Company purchased 9% bonds having a maturity value of $210,000 for $227,221.68. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Sandhill Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2025.
