Prepare Garzon Companys journal entries to record the following transactions for the current year.

Jan 1 Purchases 6% bonds (as a held-to-maturity investment) issued by PBS at a cost of $40,000, which is the par value.

Jul 1 Receives first semiannual payment of interest from PBS bonds.

Dec 31 Receives a check from PBS in payment of principal ($40,000) and the second semiannual payment of interest.