If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold until the bond maturity date, the interest revenue recognized when each semiannual interest payment is received would be recorded as a a. credit to Cash, $2,500. b. credit to Interest Revenue, $2,500. c. debit to Long-term Investments—Held-to-Maturity, $2,500. d. debit to Dividend Revenue, $2,500.
If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold until the bond maturity date, the interest revenue recognized when each semiannual interest payment is received would be recorded as a a. credit to Cash, $2,500. b. credit to Interest Revenue, $2,500. c. debit to Long-term Investments—Held-to-Maturity, $2,500. d. debit to Dividend Revenue, $2,500.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...
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If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold until the bond maturity date, the interest revenue recognized when each semiannual interest payment is received would be recorded as a
a. credit to Cash, $2,500.
b. credit to Interest Revenue, $2,500.
c. debit to Long-term Investments—Held-to-Maturity, $2,500.
d. debit to Dividend Revenue, $2,500.
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