On January 1, 2017, Carmello Corporation Purchased 4% Bonds with a Face

On January 1, 2017, Carmello Corporation purchased 4% bonds with a face value of $100,000 for $92,000. Carmello Corporation intends to hold the bonds until the maturity date of January 1, 2027. Interest is paid semiannually on January 1 and July 1. The company uses the straight-line amortization method for discounts and premiums. What journal entry(ies) is(are) prepared on July 1, 2017?

A) debit Cash $2000 and credit Interest Receivable $2000
B) debit Cash $4000 and credit Interest Revenue $4000
C) debit Interest Receivable $2000 and credit Interest Revenue $2000; debit Held-to-Maturity Investment in Bonds $400 and credit Interest Revenue $400
D) debit Cash $2000 and credit Interest Revenue $2000; debit Held-to-Maturity Investment in Bonds $400 and credit Interest Revenue $400