Brookhaven& Co. owns vast amounts of corporate bonds. SupposeBrookhaven buys $1,000,000 of BloomCo bonds at face value on January 2,2018.The BloomCo bonds pay interest at the annual rate of 8% on June 30 and December 31 and mature on December 31,2037.Brookhaven intends to hold the investment until maturity.

Requirements

1.	Journalize any required 2018 entries for the bond investment.
2.	How much cash interest will Brookhaven receive each year from BloomCo?
3.	How much interest revenue will Brookhaven eport during 2018 on this bondinvestment?

AND,

Suppose Hale and Sons purchases $900,000 of 6.5%annual bonds ofHammond Corporation at face value on January 1, 2018. These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2027.Hale intends to hold the Hammond bond investment until maturity.

Requirements:

1.	Journalize Hale and Sons transactions related to the bonds for2018.
2.	Journalize the entry required on the Hammond bonds maturity date. (Assume the last interest payment has already been recorded.)

Begin by journalizing Hale and Sons' investment on January 1,2018.

Date			Accounts and Explanation	Debit	Credit
2018
Jan. 1