Astro Mile

& Co. owns vast amounts of corporate bonds. Suppose

Astro Mile

buys

$400,000

of

CoteCorp

bonds at face value on January 2,

2018.

The

CoteCorp

bonds pay interest at the annual rate of

5%

on June 30 and December 31 and mature on December 31,

2037.

Astro Mile

intends to hold the investment until maturity.

Astro Mile & Co. owns vast amounts of corporate bonds. Requirements Suppose Astro Mile buys $400,000 of CoteCorp bonds at face 1. Journalize any required 2018 entries for the bond value on January 2, 2018. The CoteCorp bonds pay interest at investment the annual rate of 5% on June 30 and December 31 and 2. How much cash interest will Astro Mile receive each mature on December 31, 2037. Astro Mile intends to hold the from CoteCorp? investment until maturity. 3. How much interest revenue will Astro Mile report du 2018 on this bond investment? Requirement 1. Journalize any required 2018 entries for the bond investment. (Record debits first, then credits. Select ti explanation on the last line of the journal entry table.) Begin by journalizing Astro Mile's investment on January 2, 2018. Date Accounts and Explanation Debit Credit 2018 Jan. 2 Next, journalize the receipt of cash interest on June 30, 2018. Accounts and Explanation Debit Credit Date 2018 Jun 30 Choose from any list or enter any number in the input fields and then continue to the next question. Date Accounts and Explanation Debit Credit 2018 Dec. 31 Requirement 2. How much cash interest will Astro Mile receive each year from CoteCorp? Astro Mile will receive $ of cash interest each year from CoteCorp. Requirement 3. How much interest revenue will Astro Mile report during 2018 on this bond investment? Astro Mile will report $ of interest revenue during 2018 on this bond investment. hoose from any list or enter any number in the input fields and then continue to the next