Barnes Company purchased $66,000 of 12.0% bonds at par. The bonds mature in six

Question

Barnes Company purchased $66,000 of 12.0% 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? ma) 1.53 points Multiple Choice (8 00:55:14 debit Cash, $7.920; credit Long-Term Investments-HTM, $7,920. debit Cash, $3,960; credit Interest Revenue, $3,960. debit Unrealized Gain-Equity, $3,960, credit Cash, $3.960. debit Cash, $7,920; credit Unrealized Gain-Equity, $7,920.

Explanation / Answer

Answer is B

General Journal Debit Credit Cash($66,000 * 12% * 6/12) $3,960 Interest Revenue $3,960

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