On November 1, 2018, Sigma Inc. invests in $1,000,000 of 5%, 10-year bondsissued by Microsoft Corporation, intending to hold the bonds until their maturity. The bondspay interest each January 1 and July 1. What account related to the bonds will be on Sigma’sincome statement for the year ended December 31, 2018?a. Interest revenueb. Interest expensec. Interest receivabled. Interest payable

Question

On November 1, 2018, Sigma Inc. invests in $1,000,000 of 5%, 10-year bonds
issued by Microsoft Corporation, intending to hold the bonds until their maturity. The bonds
pay interest each January 1 and July 1. What account related to the bonds will be on Sigma’s
income statement for the year ended December 31, 2018?
a. Interest revenue
b. Interest expense
c. Interest receivable
d. Interest payable

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