Barnes Company purchased $86,000 of 8.0% bonds at par. The bonds mature in six years...
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Accounting
Barnes Company purchased $86,000 of 8.0% 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?
Multiple Choice
a. debit Cash, $6,880; credit Long-Term InvestmentsHTM, $6,880.
b. debt Cash, $3,440; credit Long-Term InvestmentsHTM, $3,440.
c. debit Unrealized Gain-Equity, $3,440; credit Cash, $3,440.
d. debit Cash, $3,440; credit Interest Revenue, $3,440.
e. debit Cash, $6,880; credit Unrealized Gain-Equity, $6,880.
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