Mazzeo Company acquires 80 Dodd's 10%, 5 year, $1,000 bonds on January 1, 2017 for $80,000. Assume Dodd's pays interest annually on January 1. Mazzeo's journal entry at December 31, 2017 would include a credit to

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Mazzeo Company would record interest revenue for the year. Since the bonds have a 10% interest rate and a face value of $1,000 each, the annual interest per bond is $100. For 80 bonds, the total interest revenue is $8,000.

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