Answer:
Dr bond investment       $1,400,000
Cr cash                             $1,400,000
Cash interest is  $112,000.00
Interest revenue for the year is also $ 112,000.00 Â
Explanation:
The cash paid for the investment is $1,400,000, this would be debited to bond investment and credited to cash since it is an outflow of cash from the business.
At six-month interval, coupon receivable=$1,400,000*8%*1/2=$ 56,000.00 Â
annual coupon receivable=$ 56,000.00 *2=$ 112,000.00 Â