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Course Home D MyLab and Mastering ? | e Secure l https://www.mathsl.com/Student/PlayerTest.aspx?testid-176891 561&centerwin-yes; xTake a Test - zakia opianix 6 BUSAC 186-2561 MW 10-11:50AM Zakia opiani I 4/10/18822 PM Quiz: Chapter 8 Quiz Time Remalning: 01:29:20 Submit Quiz This Question: 1 pt 7 of 21 (0 complete) ? This Quiz: 25 pts possible On January 1 2017 Bucket Company purchased as an investment a S 1,200, 4% bond for S960 Bucket plans to hold the bond until the maturity date of January 1 2027. The bond pays interest on January 1 and July 1. The company's fiscal year ends on December 31 and it uses the straight-line amortization method for discounts and premiums. The journal entry on December 31, 2017 is ( A. debit Cash for $24 and credit Interest Revenue for $24 O B. debit Interest Receivable for $24, debit Held-to-Maturity Investment in Bond for $12 and credit Interest Revenue for $36. O C. debit Held-to-Maturity Investment in Bonds for $24 and credit Interest Revenue for $24. O D. debit Interest Receivable for $36, credit Held-to-Maturity Investment in Bonds for $12 and credit Interest Revenue for $24 Click to select your answer

Explanation / Answer

Answer is B

General Journal Debit Credit Interest Receivable($1,200 × 4% × 1/2) $24 Held-to-Maturity Investment in Bond($240 / 20) $12 Interest Revenue $36

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