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Question 4 1 pts On January 1,2021, RR purchased...

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Accounting

Question 4
1 pts
On January 1,2021, RR purchased $100,000 of Apple Company bonds at a premium of $5,000. The bonds pay 7% interest but were purchased when the market interest rate was 6% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. RR accounts for the bonds as a trading security. On December 31,2021, journal entry to record the second period of interest, RR would record a credit to interest revenue of:
A) $3,336.
B) $3,140.
C) $3,000.
D) $3,500.
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