Barnes Company holds $50,000 of 8% bonds that mature in six years as a held-to-maturity...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Barnes Company holds $50,000 of 8% bonds that mature in six years as a held-to-maturity security. Which of the following is the correct journal entry to record the receipt of the semiannual interest payment?
Select one:
a. debit Cash, $4,000; credit Unrealized Gain-Equity, $4,000.
b. debit Unrealized Gain-Equity, $2,000; credit Cash, $2,000.
c. debit Cash, $2,000; credit Interest Revenue, $2,000.
d. debit Cash, $4,000; credit Long-Term InvestmentsHTM, $4,000.
e. debt Cash, $2,000; credit Long-Term InvestmentsHTM, $2000.
Answer & Explanation
Solved by verified expert
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: Zin AI - Your personal assistant for all your inquiries!
