Outer Mile & Co. owns vast amounts of corporate bonds. Suppose Outer Mile buys $1,400,000 of MayaCorp bonds at face value on January 2, 2018. The MayaCorp bonds pay interest at the annual rate of 4% on June 30 and December 31 and mature on December 31, 2032. Outer Mile intends to hold the investment until maturity. Requirements 1. Journalize any required 2018 entries for the bond investment. 2. How much cash interest will Outer Mile receive each year from MayaCorp? 3. How much interest revenue will Outer Mile report during 2018 on this bond investment? Requirement 1. Journalize any required 2018 entries for the bond investment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Outer Mile's investment on January 2, 2018. Date Accounts and Explanation Debit Credit 2018 Jan. 2 Next, journalize the receipt of cash interest on June 30, 2018. Date Accounts and Explanation Debit Credit 2018 Jun. 30 Now journalize the receipt of cash interest on December 31, 2018. Date Accounts and Explanation Debit Credit 2018 Dec. 31 Requirement 2. How much cash interest will Outer Mile receive each year from MayaCorp? Outer Mile will receive $ of cash interest each year from MayaCorp. Requirement 3. How much interest revenue will Outer Mile report during 2018 on this bond investment? Outer Mile will report $ of interest revenue during 2018 on this bond investment. Date Accounts and Explanation Debit 2018 Jan. 2 Debit Available-for-Sale Debt Investments Cash Dividend Revenue Equity Investment Next, journalizet Fair Value Adjustment-Available-for-Sale Fair Value AdjustmentHeld-to-Maturity Date Fair Value AdjustmentTrading 2018 Held-to-Maturity Debt Investments Jun. 30 Interest Revenue Trading Debt Investments Unrealized Holding GainAvailable-for-Sale Unrealized Holding GainHeld-to-Maturity Unrealized Holding GainTrading Unrealized Holding LossAvailable-for-Sale Now journalize th Unrealized Holding LossHeld-to-Maturity Unrealized Holding Loss-Trading Date Debit 2019 xt, journalizet Disposed of bond at maturity. Date Purchased investment in bonds. 2018 Received cash interest. Jun. 30