Co. owns vast amounts of corporate bonds. Suppose

Outer MileOuter Mile

buys

$ 600 comma 000$600,000

of

BloomCoBloomCo

bonds at face value on January 2,

20182018.

The

BloomCoBloomCo

bonds pay interest at the annual rate of

55 %

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

20272027.

Outer MileOuter Mile

intends to hold the investment until maturity.

Requirements

1.	Journalize any required 20182018 entries for the bond investment.
2.	How much cash interest will Outer MileOuter Mile receive each year from BloomCoBloomCo ?
3.	How much interest revenue will Outer MileOuter Mile report during 20182018 on this bond investment?