Question: Debra Technologies invests $50,000 to acquire $50,000 face value, 10%, five-year corporate bonds on December 31, 2010. The bonds will mature on December 31, 2015.

Debra Technologies invests $50,000 to acquire $50,000 face value, 10%, five-year corporate bonds on December 31, 2010. The bonds will mature on December 31, 2015. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Debra 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, 2014?

A. a debit to Interest Revenue for $2,500

B. a credit to Interest Revenue for $2,500

C. a debit to Interest Revenue for $5,000

D. a credit to Interest Revenue for $5,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Mandisa Fox started a company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since day one, Mandisa has rented the equipment from a local printing shop when necessary. The...

Denzel Corporation is planning to issue bonds with a face value of $750,000 and a coupon rate of 7.5 percent. The bonds mature years and pay interest semiannually every June 30 and December 31. All...

Please complete the attached using an Excel spreadsheet to show your work for every problem. Ps I have now an hour left please only accept the project if you can complete it in an hour thank you Page...

(b) On January 1, 2020, Sarasota Corporation purchased 333 of the $1,000 face value, 8%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January...

Multiple choice (5 pts each) (highlight or clearly mark your answer) Significant interest investments must be accounted for using the: equity method. consolidation method. discounted cash flow...

Debra Technologies invests $50,000 to acquire $50,000 face value, 12%, five-year corporate bonds on December 31, 2010. The bonds will mature on December 31, 2015. The bonds pay interest semiannually...

9) Debra Technologies invests $68,000 to acquire $68,000 face value, 10%, five-year corporate bonds on December 31, 2010. The bonds will mature on December 31, 2015. The bonds pay interest...

9) Debra Technologies invests $68,000 to acquire $68,000 face value, 10%, fiveyear corporate bonds on December 31, 2010. The bonds wiJl mature on December 31, 2015. The bonds pay interest...

Debra Technologies invests $64,000 to acquire $64,000 face value, 10%, five-year corporate bonds on December 31, 2010. The bonds will mature on December 31, 2015. The bonds pay interest semiannually...

Debra Technologies invests? $50,000 to acquire? $50,000 face? value, 10%,? five-year corporate bonds on December? 31, 2010. The bonds will mature on December? 31, 2015. The bonds pay interest...

Observe the periodic Table to answer the questions. 1-IA 2-1IA 13-IIIA 14-IVA 15-VA 16-VIA 17-VIIA 18-0 Period 2 Li Q Ne Period 3 Period 4 Y The element having least ionisation energy is a) Li b) CI...

Devise an iterative algorithm to find the nth term of the sequence defined in Exercise 32.

7 Work out 330.1 b 9990.1 300.1 8.70.1 a C P 770.01 7000.01 70.01 e f 700.01 h g

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

Writing a Strong Introduction

Conclude with the same strength as in the introduction Prepare an effective outline?

Choose appropriate and powerful language Develop a strong introduction, a crucial part of all speeches