This Question: 1 pt 20 of 21 (0 complete) ? This Quiz: 25 pts possible On Januar

Question

This Question: 1 pt 20 of 21 (0 complete) ? This Quiz: 25 pts possible On January 1, 2017, Corbin Company purchases $180,000, 4% bonds at a price of 91 and a maturity date of January 1, 2027. Corbin Company intends to hold the bonds until their maturity date. Interest is paid semiannually, on January 1 and July 1. Corbin Company has a calendar year end and uses the straight-ine amortization method for discounts and premiums. The entry to amortize the bond investment on July 1, 2017 is: O A. debit Held-to-Maturity Investment in Bonds for $810 and credit Interest Revenue for $810. O B. debit Held-to-Maturity Investment in Bonds for $810 and credit Interest Receivable for $810 ° C. debit Cash for S 1,620 and credit Interest Revenue for $1,620. OD. debit Held-to-Maturity Investment in Bonds for $1,620 and credit Interest Revenue for $1,620.

Explanation / Answer

Amortization per period=(180000*0.09)/20= $810 Debit Held to maturity investment in Bonds for $810 and credit Interest revenue for $810 Option A is correct

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