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Leonard Technologies Invests $68,000 to Acquire $68,000 Face Value,10%,five-Year Corporate

Question 73

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Leonard Technologies invests $68,000 to acquire $68,000 face value,10%,five-year corporate bonds on December 31,2014.The bonds will mature on December 31,2019.The bonds pay interest semiannually on December 31 and June 30 every year until maturity.Assume Leonard 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 31,2018?


A) a credit to Interest Revenue for $6800
B) a debit to Interest Revenue for $6800
C) a credit to Interest Revenue for $3400
D) a debit to Interest Revenue for $3400

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