18. Outer Mile & Co. owns vast amounts of corporate bonds. Suppose Outer Mile buys $900,000 of MesoCorp bonds at face value Requirements on January 2, 2018. The MesoCorp bonds pay interest at the annual rate of 5% on June 30 and December 31 and mature on 1. Journalize any required 2018 entries for the bond investment. December 31, 2022. Outer Mile intends to hold the investment until maturity. 2. How much cash interest will Outer Mile receive each year from MesoCorp? 3. How much interest revenue will Outer Mile report during 2018 on this bond investment? Requirement 1. Journalize any required 2018 entries for the bond investment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Outer Mile's investment on January 2, 2018. Date Accounts and Explanation Debit Credit 2018 Jan. 2 (1) (2) (3) (4) (5) Next, journalize the receipt of cash interest on June 30, 2018. Date Accounts and Explanation Debit Credit 2018 Jun. 30 (6) (7) (8) (9) |(10) Now journalize the receipt of cash interest on December 31, 2018. Print Date Accounts and Explanation Debit Credit 2018 Dec. 31 (11) (12) (13) (14) (15) Requirement 2. How much cash interest will Outer Mile receive each year from MesoCorp? Cash interest Outer Mile will receive each year from MesoCorp = Requirement 3. How much interest revenue will Outer Mile report during 2018 on this bond investment? Interest revenue Outer Mile will report during 2018 on this bond investment = Unrealized Holding Loss-Trading (1) O O Available-for-Sale Debt Investments O Cash Dividend Revenue Equity Investment Fair Value AdjustmentAvailable-for-Sale O Fair Value Adjustment-Held-to-Maturity O Fair Value Adjustment-Trading O Held-to-Maturity Debt Investments O Interest Revenue O Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Unrealized Holding GainHeld-to-Maturity Unrealized Holding GainTrading O Unrealized Holding LossAvailable-for-Sale Unrealized Holding Loss-Held-to-Maturity Unrealized Holding Loss-Trading (2) O Available-for-Sale Debt Investments O Cash O Dividend Revenue Equity Investment O Fair Value Adjustment-Available-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Fair Value AdjustmentTrading O Held-to-Maturity Debt Investments Interest Revenue Trading Debt Investments O Unrealized Holding GainAvailable-for-Sale O Unrealized Holding Gain-Held-to-Maturity O Unrealized Holding Gain-Trading Unrealized Holding Loss-Available-for-Sale Unrealized Holding LossHeld-to-Maturity Unrealized Holding Loss-Trading (3) O Available-for-Sale Debt Investments O Cash O Dividend Revenue O Equity Investment Fair Value Adjustment-Available-for-Sale O Fair Value Adjustment-Held-to-Maturity O Fair Value AdjustmentTrading O Held-to-Maturity Debt Investments Interest Revenue Trading Debt Investments Unrealized Holding GainAvailable-for-Sale O Unrealized Holding Gain-Held-to-Maturity Unrealized Holding Gain-Trading O Unrealized Holding Loss-Available-for-Sale O Unrealized Holding Loss-Held-to-Maturity O Unrealized Holding Loss-Trading (4) O O Available-for-Sale Debt Investments O Cash O Dividend Revenue O Equity Investment O Fair Value Adjustment-Available-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Fair Value AdjustmentTrading Held-to-Maturity Debt Investments Interest Revenue Trading Debt Investments Unrealized Holding GainAvailable-for-Sale O Unrealized Holding Gain-Held-to-Maturity O Unrealized Holding Gain-Trading O Unrealized Holding LossAvailable-for-Sale O Unrealized Holding LossHeld-to-Maturity (5) O O Disposed of bond at maturity. O Purchased investment in bonds. O Received cash interest. O Unrealized Holding LossTrading (6) O O Available-for-Sale Debt Investments O Cash Dividend Revenue Equity Investment O Fair Value Adjustment-Available-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Fair Value AdjustmentTrading O Held-to-Maturity Debt Investments O Interest Revenue Trading Debt Investments Unrealized Holding GainAvailable-for-Sale O Unrealized Holding GainHeld-to-Maturity O Unrealized Holding Gain-Trading Unrealized Holding LossAvailable-for-Sale Unrealized Holding Loss-Held-to-Maturity Unrealized Holding Loss-Trading (7) O Available-for-Sale Debt Investments O Cash O Dividend Revenue Equity Investment O Fair Value Adjustment-Available-for-Sale Fair Value AdjustmentHeld-to-Maturity O Fair Value AdjustmentTrading O Held-to-Maturity Debt Investments Interest Revenue O Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Unrealized Holding Gain-Held-to-Maturity O Unrealized Holding Gain-Trading Unrealized Holding Loss-Available-for-Sale O Unrealized Holding LossHeld-to-Maturity Unrealized Holding LossTrading (8) O Available-for-Sale Debt Investments O Cash O Dividend Revenue O Equity Investment Fair Value Adjustment-Available-for-Sale Fair Value AdjustmentHeld-to-Maturity O Fair Value AdjustmentTrading O Held-to-Maturity Debt Investments O Interest Revenue O Trading Debt Investments O Unrealized Holding GainAvailable-for-Sale Unrealized Holding GainHeld-to-Maturity Unrealized Holding GainTrading Unrealized Holding Loss-Available-for-Sale O Unrealized Holding LossHeld-to-Maturity (9) Unrealized Holding Loss-Trading Available-for-Sale Debt Investments O Cash O Dividend Revenue Equity Investment Fair Value Adjustment-Available-for-Sale Fair Value Adjustment-Held-to-Maturity O Fair Value AdjustmentTrading O Held-to-Maturity Debt Investments Interest Revenue Trading Debt Investments O Unrealized Holding GainAvailable-for-Sale Unrealized Holding GainHeld-to-Maturity O Unrealized Holding GainTrading Unrealized Holding LossAvailable-for-Sale Unrealized Holding Loss-Held-to-Maturity (10) O O Disposed of bond at maturity. O Purchased investment in bonds. O Received cash interest. Unrealized Holding Loss-Trading (11) O Available-for-Sale Debt Investments O Cash O Dividend Revenue O Equity Investment O Fair Value AdjustmentAvailable-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Fair Value AdjustmentTrading O Held-to-Maturity Debt Investments O Unrealized Holding GainHeld-to-Maturity O Interest Revenue Unrealized Holding Gain-Trading O Trading Debt Investments O Unrealized Holding Loss-Available-for-Sale Unrealized Holding GainAvailable-for-Sale Unrealized Holding LossHeld-to-Maturity Unrealized Holding Loss-Trading (12) O Available-for-Sale Debt Investments Cash O Dividend Revenue Equity Investment O Fair Value Adjustment-Available-for-Sale Fair Value AdjustmentHeld-to-Maturity O Fair Value Adjustment Trading Held-to-Maturity Debt Investments Interest Revenue Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Unrealized Holding GainHeld-to-Maturity O Unrealized Holding Gain-Trading Unrealized Holding LossAvailable-for-Sale Unrealized Holding Loss-Held-to-Maturity Unrealized Holding Loss-Trading (13) O O Available-for-Sale Debt Investments O Cash O Dividend Revenue O Equity Investment O Fair Value Adjustment-Available-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Fair Value AdjustmentTrading O Held-to-Maturity Debt Investments Interest Revenue O Trading Debt Investments Unrealized Holding GainAvailable-for-Sale O Unrealized Holding Gain-Held-to-Maturity O Unrealized Holding Gain-Trading O Unrealized Holding LossAvailable-for-Sale O Unrealized Holding Loss-Held-to-Maturity (14) Unrealized Holding Loss-Trading O Available-for-Sale Debt Investments O Cash O Dividend Revenue Equity Investment O Fair Value Adjustment-Available-for-Sale O Fair Value AdjustmentHeld-to-Maturity O Fair Value AdjustmentTrading O Held-to-Maturity Debt Investments Unrealized Holding GainHeld-to-Maturity O Interest Revenue Unrealized Holding Gain-Trading Trading Debt Investments O Unrealized Holding Loss-Available-for-Sale Unrealized Holding GainAvailable-for-Sale Unrealized Holding LossHeld-to-Maturity (15) O Disposed of bond at maturity. Purchased investment in bonds. O Received cash interest. Snipping Tool