Held-to- Maturity investments: On January 1, 2019, a company pays $2,061,440 for a 10- year corporate bond with a face value of $2,000,000. The bond pays interest of 10.5 percent on December 31 of each year, and the principal is due on December 31, 2028. The investment yields a 10 percent compound annual return to maturity. The company classifies the bond as a held-to-maturity investment.

Required

Prepare the journal entries to record the investment on January 1, 2019, receipt of the interest payments on December 31 of each year 2019 to 2021 only ( Do not make journal entries for 1922 to 2028), and make the journal entry to record the receipt of the bond principal on December 31, 2028. Use the effective interest method for amortization.