Griffin purchased a bond on January 1, 2018, for $ 140 comma 000. The bond has a face value of $ 140 comma 000 and matures in 20 years. The bond pays interest on June 30 and December 31 at a 3% annual rate. Griffin plans on holding the investment until maturity. Read the requirementsLOADING Requirement 1. Journalize the 2018 transactions related to Griffin's bond investment. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Begin by journalizing Griffin's investment on January 1, 2018.

January 1 2018:

Dr Bond investment     $140,000

Cr Cash                                           $140,000

June 30 2018:

Dr cash       $2,100

Cr Interest income     $2,100

December 31 2018:

Dr cash       $2,100

Cr Interest income     $2,100

Explanation:

Upon purchase of the bond Griffin would credit cash with $140,000 since cash is being parted with and debit bond investment with $140,000 as an asset .

On June 30 2018 the interest income of $2,100 ($140,000*3%*6/12) would e received,hence debited to cash account and credited to interest income account.

On December  31 2018 the interest income of $2,100 ($140,000*3%*6/12) would e received,hence debited to cash account and credited to interest income account.

All in all the total of $4,200 would be received in the year 2018 as income from the bond investment