Multiple Choice
On January 1, Bucket Company purchased as an investment a $1,000, 7% bond for $980. Bucket plans to hold the bond for two years. The bond pays interest on January 1 and July 1. The entry to record the interest accrual on December 31 would include a:
A) debit to Interest Receivable for $35.
B) debit to Long-Term Investment in Bonds for $35.
C) debit to Interest Receivable for $70.
D) debit to Long-Term Investment in Bonds for $70.
Correct Answer:
Verified
Correct Answer:
Verified
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