Mazzeo Company acquires 80 Dodd's 10%, 5 year, $1,000 bonds on January 1, 2022 for $80,000.Assume Dodd's pays interest annually on January 1.Mazzeo's journal entry at December 31, 2022 would include a credit to

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Mazzeo Company would record interest revenue of $8,000 for the year ended December 31, 2022. This is because Dodd's pays interest annually on January 1, and Mazzeo acquired the bonds on January 1, 2022. Therefore, Mazzeo would have earned one year's worth of interest on the bonds by December 31, 2022.

Mazzeo Company Acquires 80 Dodd's 10%, 5 Year, $1,000 Bonds