The following bond transactions occurred during 2018 for the University of Higher Learning (UHL) and Munchies Ltd.:

Feb.1 UHL issued $9,600,000 of five-year, 4% bonds at 97 (this means 97% of maturity value) at a price to yield a market interest rate of 4.7%. The bonds pay interest semi-annually on August 1 and February 1.1 Munchies Ltd. purchased $2,700,000 of UHL's bonds at 97 as a long-term investment that was to be held to maturity.Aug.1 The semi-annual interest on the bonds was paid.

required journal entries for Munchies Ltd., the investor, to record the above transactions.