Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the receipt of interest on the next interest payment date would be:

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Since Ruben Company purchased the bonds at a premium ($100,000 + $1,500 = $101,500), they will receive interest payments that are higher than the face value of the bond. The semi-annual interest payment can be calculated as:

Face value of bond x annual interest rate x time period = $100,000 x 8% x 6/12 = $4,000

Since Ruben Company did not own the bond for the entire interest period, they are only entitled to receive the interest that accrued after they purchased the bond. This is equal to:

Accrued interest at time of purchase / total interest payment = $1,500 / $4,000 = 0.375 or 37.5%

Therefore, the journal entry to record the receipt of interest on the next interest payment date would be:
Debit: Cash $4,000
Credit: Interest Receivable $1,500 and Interest Revenue $2,500

This is because $1,500 of the interest was already accrued and recorded as a part of the purchase price, and the remaining $2,500 represents the interest earned during the period that Ruben Company owned the bond.

Ruben Company Purchased $100,000 of Evans Company Bonds at 100