Barnes Company Purchased $50,000 of 8% Bonds at Par

Multiple Choice

Barnes Company purchased $50,000 of 8% bonds at par.The bonds mature in six years and are classified as a held-to-maturity security.Which of the following is the correct journal entry to record the receipt of the usual semiannual interest payment?

A) debit Cash,$4,000; credit Long-Term Investments-HTM,$4,000.
B) debt Cash,$2,000; credit Long-Term Investments-HTM,$2000.
C) debit Cash,$2,000; credit Interest Revenue,$2,000.
D) debit Unrealized Gain-Equity,$2,000; credit Cash,$2,000.
E) debit Cash,$4,000; credit Unrealized Gain-Equity,$4,000.