Barnes Company purchased $80,000 of 11.0% bonds at par. The bonds mature in six years...
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Accounting
Barnes Company purchased $80,000 of 11.0% bonds at par. The bonds mature in six years and are a held-to-maturity security. Which of the following is the correct journal entry to record the receipt of the semiannual interest payment?
a. debit Cash, $8,800; credit Long-Term InvestmentsHTM, $8,800.
b. debit Cash, $8,800; credit Unrealized Gain-Equity, $8,800.
c. debt Cash, $4,400; credit Long-Term InvestmentsHTM, $4,400.
d. debit Cash, $4,400; credit Interest Revenue, $4,400.
e. debit Unrealized Gain-Equity, $4,400; credit Cash, $4,400.
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