On January 1, 2011, Milton Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 and July 1.Milton Company has a calendar year end. The entry for the receipt of interest on July 1, 2011, is

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The entry to record the receipt of interest on July 1, 2011, is:Cash                                $30Interest Revenue            $30The bond pays interest semi-annually, so the interest payment on July 1, 2011, is for the six months from January 1, 2011, to June 30, 2011. The interest rate is 6%, so the interest payment is $1,000 x 6% x 6/12 = $30.

On January 1, 2011, Milton Company Purchased at Face Value Cash30 Interest Revenue30\begin{array} { l } \text { Cash}&30\\\quad\text { Interest Revenue}&&30\\\end{array} Cash Interest Revenue​30​30​

On January 1, 2011, Milton Company Purchased at Face Value $\begin{array} { l } \text { Cash}&30\\\quad\text { Interest Revenue}&&30\\\end{array}$