Seudónimo Seudónimo

09-06-2020
Business

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Leonard Technologies invests $ 62,000 to acquire $ 62,000 face value, 8%, fiveminusyear corporate bonds on December 31, 2014. The bonds will mature on December 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2018?

a. a debit to Interest Revenue for $5,400
b. a credit to Interest Revenue for $2,700
c. a debit to Interest Revenue for $2,700
d. a credit to Interest Revenue for $5,400

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