On January 1,2014,Bucket Company Purchased as an Investment a $1,000,7

Multiple Choice

On January 1,2014,Bucket Company purchased as an investment a $1,000,7% bond for $980.Bucket plans to hold the bond until the maturity date of January 1,2024.The bond pays interest on January 1 and July 1.The company's fiscal year ends on December 31.The journal entry on December 31,2014 is:

A) debit Interest Receivable for $35,debit Held-to-Maturity Investment in Bond for $1 and credit Interest Revenue for $36.
B) debit Cash for $35 and credit Interest Revenue for $35.
C) debit Interest Receivable for $36,credit Held-to-Maturity Investment in Bonds for $1 and credit Interest Revenue for $35.
D) debit Held-to-Maturity Investment in Bonds for $35 and credit Interest Revenue for $35.