On January 1,2019,Dooley Company purchases $92,000,6% bonds at a price of 90.8 and a maturity date of January 1,2029.Dooley Company intends to hold the bonds until their maturity date and has the ability to do so.Interest is paid semiannually,on January 1 and July 1.Dooley Company has a calendar year end.The entry for the receipt of interest on July 1,2019 is:
A) debit Cash for $2,760 and credit Interest Revenue for $2,760.
B) debit Cash for $5,520 and credit Interest Revenue for $5,520.
C) debit Investment in Bonds for $2,760 and credit Interest Revenue for 2,760.
D) debit Investment in Bonds for $5,520 and credit Interest Revenue for $5,520.
Correct Answer:
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