Purchased $42,500, 9.5%, 20 year bond at 102 from Cupid Inc. To be held to matur

Question

Purchased $42,500, 9.5%, 20 year bond at 102 from Cupid Inc. To be held to maturity. Purchased $42,500, 9.5%, 20 year bond at 102 from Cupid Inc. To be held to maturity. Purchased $42,500, 9.5%, 20 year bond at 102 from Cupid Inc. To be held to maturity. Received the first semi-annual interest check from Cupid Inc. Received the first semi-annual interest check from Cupid Inc.  

Received the first semi-annual interest check from Cupid Inc.

how would i post the check received

Received the first semi-annual interest check from Cupid Inc.

how would i post the check received

Explanation / Answer

Ans: Amount of Interest Received = $ 42500 x 9.5% x 1/2 year = $ 2018.75

       Journal Entry:   Interest Income         Dr 2018.75

                                  To Bank A/c                       2018.75

                          (Being interest received on the bond)

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