I have a question about a journal entry for the purchase of a $120,000 10 yr, 15% bond, directly from the issuing company, $116,000 plus accrued interest of $4,500.
Is this correct?
Debit Bond Investment 116,000
Debit interest Receivable 4,500
Credit Cash 120,500

That is one way to do it, yes.

Is there another way? Thanks for the reply

This is book-dependent. The receivable can be an interest revenue. (When the interest payment is received, rather than having to split it between revenue and receivable, you just stick the whole thing into revenue, and then the original debit just nets against it, creating the proper amount in revenue.)

Also, the discount can be done in a contra account, just like with bond issances. However, I've only actually seen it done that way once in a textbook.