Debra Technologies invests $68,000 to acquire $68,000 face value,10%,five-year corporate bonds on December 31,2010.The bonds will mature on December 31,2015.The bonds pay interest semiannually on December 31 and June 30 every year until maturity.Assume Debra Technologies uses a calendar year.Based on the information provided,which of the following will be included in the journal entry for the transaction on December 31,2014?
A) a credit to Interest Revenue for $6,800
B) a debit to Interest Revenue for $6,800
C) a credit to Interest Revenue for $3,400
D) a debit to Interest Revenue for $3,400
Correct Answer:
Verified
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