On January 1,2019,Carmody Corporation purchased 6% bonds with a face value of $66,000 for $68,000.Carmody Corporation intends to hold the bonds until the maturity date and has the ability to do so.Interest is paid semiannually on January 1 and July 1.The company uses the straight-line amortization method for discounts and premiums.The journal entry on January 1,2019 is:
A) debit Held-to-Maturity Investment in Bonds for $66,000,debit Premium on Bonds for $2,000 and credit Cash for $68,000.
B) debit Held-to-Maturity Investment in Bonds for $68,000 and credit Cash for $68,000.
C) debit Investment in Bonds for $68,000 and credit Interest Revenue for $68,000.
D) debit Investment in Bonds for $66,000,debit Premium on Bonds for $2,000 and credit Interest Revenue $68,000.
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