Canadian Tire Corporation is Canada's largest retailer of sporting goods, offering a comprehensive assortment of products, operating stores from coast to coast under the names Sport Chek, Sports Experts, Coast Mountain Sports, Sport :Mart, and National Sports. Revenues from selling sporting goods are in excess of $1.6 billion each year.
Assume that as part of its cash management strategy, Canadian Tire purchased $10 million in bonds at par for cash on July 1, 2018. The bonds pay 5 percent interest each June 30 and December 31 and mature in 10 years. Canadian Tire plans to hold the bonds until maturity.

Required:
1. Record the purchase of the bonds on July 1, 2018.
2. Record the receipt of interest on December 31, 2018.