(Note: This is a variation of E 14–7 modified to consider the investor’s perspective.) Universal Foods sold the entire bond issue described in the previous exercise to Wang Communications.

Required:
1. Prepare the journal entry to record the purchase of the bonds by Wang Communications on January 1, 2021.
2. Prepare the journal entry to record interest revenue on June 30, 2021.
3. Prepare the journal entry to record interest revenue on December 31, 2028.