On March 1, 2018, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $107,000 plus accrued interest. The bonds were purchased at face value. The appropriate interest rate is 6%. Interest on these bonds is payable on January 1 and July 1 of each year. Navys investment is accounted for as held to maturity. The fair value of the Treasury bonds is $108,000 at year-end. Required: Prepare the appropriate journal entries to record the transactions for the year, including any year-end adjustments.