Held-to-Maturity Investments On January 1, 2022, a company pays $5,141,431 for a 3-year corporate bond with a face value of $5 million. The bond pays interest at 4 percent on December 31 of each year, and the principal is due on December 31, 2024. The investment yields a 3 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, 2022, receipt of the interest payments on December 31 of each year 2022 through 2024, and receipt of the bond principal on December 31, 2024, using the effective interest method. General Journal Date Description Debit Credit 1/1/22 Investment in HTM securities Cash 12/31/22 Cash 5,141,431 0 200,000 0 Interest income Investment in HTM securities 0 0 12/31/23 Cash Interest income Investment in HTM securities 200,000 0 0 5,141,431 0 154,243 45,757 0 152,870 47,130 12/31/21 Cash 200,000 x 0 Interest income 0 151,456 x Investment in HTM securities 0 12/31/22 Cash Interest income = 200,000 x 48,544 x 0 Investment in HTM securities 12/31/24 Cash Interest income Investment in HTM securities Cash Investment in HTM securities = 0 0 200,000 0 0 5,000,000 0 148 x 0 x 0 151,456 48,544 0 5,000,000 To record receipt in bond principal