A company holds $40,000 of 7% bonds as a held-to-maturity security.The bonds were purchased at par value.The journal entry to record receipt of a semiannual interest payment includes a debit to Cash for $2,800 and a credit to Interest Revenue for $2,800.

Question

Quizplus · Accepted Answer

The Answer of A company holds $40,000 of 7% bonds as a held-to-maturity security.The bonds were purchased at par value.The journal entry to record receipt of a semiannual interest payment includes a debit to Cash for $2,800 and a credit to Interest Revenue for $2,800.

A Company Holds $40,000 of 7% Bonds as a Held-To-Maturity