Question: Advanced Electronics invests $ 1 0 0 , 0 0 0 to acquire $ 1 0 0 , 0 0 0 face value, 2 %

Advanced Electronics invests $100,000 to acquire $100,000 face value, 2%, five-year corporate bonds on December 31,2025. The bonds pay interest semiannually on June 30 and December 31 every year until maturity. Assume Advanced Electronics uses a calendar year. Based on the information provided, which of the following is the journal entry for the transaction on December 31,2026? Question 10 options: A debit to Interest Revenue for $2,000; and a credit to Cash for $2,000. A debit to Cash for $2,000; and a credit to Interest Revenue for $2,000. A debit to Interest Revenue for $1,000; and a credit to Cash for $1,000. A debit to Cash for $1,000; and a credit to Interest Revenue for $1,000.

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