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A Company Holds $40,000 of 7% Bonds as a Held-To-Maturity

Question 64

True/False

A company holds $40,000 of 7% bonds as a held-to-maturity security.The journal entry to record receipt of a semiannual interest payment includes a debit to Cash for $2,800 and a credit to Interest Revenue for $2,800.
$40,000 * 7% * ½ year = $1,400

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