Winrow Co. purchased 30, 6% Johnston Company bonds for $30,000 cash. Interest is payable semiannually on July 1 and January 1. The entry to record the July 1 semiannual interest payment would include a

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Since the bonds have a 6% interest rate, the semiannual interest payment would be calculated as: $30,000 x 6% x (6/12) = $900. Therefore, the entry to record the July 1 interest payment would include a credit to Interest Revenue for $900. Choice A is incorrect because Interest Receivable is only used to record interest that has been earned but not yet received. Choice C is incorrect because $1,800 is the total amount of interest for the entire year, not just for one semiannual payment. Choice D is incorrect because Debt Investments is only used when the bonds are originally purchased and not for recording interest payments.

Winrow Co Purchased 30, 6% Johnston Company Bonds for $30,000 Cash