On January 1,2019,Benson Company Purchases $120,000,8% Bonds at a Price

Multiple Choice

On January 1,2019,Benson Company purchases $120,000,8% bonds at a price of 90 and a maturity date of January 1,2024.Benson Company plans to hold the bonds until their maturity date and has the ability to do so.Interest is paid semiannually,on January 1 and July 1.Benson Company has a calendar year and uses the straight-line amortization method for discounts and premiums.The adjusting entry to amortize the discount and record interest revenue on December 31,2019 is:

A) debit Cash $1,200 and credit Interest Revenue $1,200.
B) debit Cash $9,600 and credit Interest Revenue $9,600.
C) debit to Interest Receivable $4,800,debit Held-to-Maturity Investment in Bonds for $1,200 and credit Interest Revenue $6,000.
D) debit to Interest Receivable $9,600 and credit Interest Revenue $9,600.