On January 1, 2022, Beresford, Inc. purchased $100,000 of Union Corporation bonds at a discount...
80.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2022, Beresford, Inc. purchased $100,000 of Union Corporation bonds at a discount of $5,000. The Union bonds pay 6% interest but were purchased when the market interest rate was 7% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Beresford accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. In the journal entry to record interest revenue at 6/30/22, Beresford would record a credit to interest revenue of:
$3,325.
$3,336.
$3,000.
$3,500.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.