Mazzeo Company acquires 80 Dodd's 10%, 5 year, $1,000 bonds on January 1, 2014 for $80,000. Assume Dodd's pays interest semiannually and the July 1 entry was done correctly. Mazzeo's journal entry at December 31, 2014 would include a credit to

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Mazzeo receives interest semiannually, so for the period from July 1 to December 31, the interest revenue would be $4,000 (80 bonds x $1,000 x 10% x 1/2 year).

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