Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. barnes company purchased $86,000 of 8.0% bonds at

Barnes Company purchased $86,000 of 8.0% bonds at par. The bonds mature in six years...

60.1K

Verified Solution

Question

Accounting

Barnes Company purchased $86,000 of 8.0% 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?

Multiple Choice

a. debit Cash, $6,880; credit Long-Term InvestmentsHTM, $6,880.

b. debt Cash, $3,440; credit Long-Term InvestmentsHTM, $3,440.

c. debit Unrealized Gain-Equity, $3,440; credit Cash, $3,440.

d. debit Cash, $3,440; credit Interest Revenue, $3,440.

e. debit Cash, $6,880; credit Unrealized Gain-Equity, $6,880.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Measurement of several of the air pollutants by the EPA includes an amount measurement aswell...

Biology
1.2K views

Gas Transport: A trout swims from its normal cold water habitat into a warm water cooling...

Programming
1.2K views

Write a function that plots the following trajectory equations using python turtle graphics. x = v*sin(A)*t y =...

Psychology
1.2K views

Define each of the six criteria of useful scientific theory. Evaluate how well each criterion applies...

Psychology
1.2K views

Select and define one of the Jean Piaget's stages of cognitive development below: Sensorimotor Stage Preoperational Stage Concrete Operational...

Psychology
1.2K views

3. What are the objectives of a crisis management plan? Why is a crisis management plan...

Algebra
1.2K views

Which graph best corresponds to this equation y x 3 Option 1 Option 3 A...

Accounting
1.2K views

Paraiso companys accounting policy with respect to investment properties is to measure them at fair...

Accounting
1.2K views

Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable...

Accounting
1.2K views

Each of the four independent situations below describes a finance lease in which annual lease...

Accounting
1.2K views

Allocating Joint Costs Using the Sales-Value-at-Split-Off Method Orchard Fresh, Inc., purchases apples from...

Accounting
1.2K views

Which overall type of accounting standard do you prefer; GAAP or IFRS, and why? Please...