This Question: 1 pt 15 of 21 (0 complete) This Quiz: 25 pts possibl On January 1

Question

This Question: 1 pt 15 of 21 (0 complete) This Quiz: 25 pts possibl On January 1, 2017, Dooley Company purchases S 110,000. 5% bonds at a price of 87.4 and a maturity date of January 1, 2027, Dooley Company intends to hold the bonds until their maturity date. Interest is paid semiannually, on January 1 and July 1. Dooley Company has a calendar year end. The entry for the receipt of interest on July 1, 2017 is: OA. debit Investment in Bonds for $5,500 and credit Interest Revenue for $5,500 O B. debit Investment in Bonds for $2,750 and credit Interest Revenue for $2,750 O C. debit Cash for $2,750 and credit Interest Revenue for $2,750. O D. debit Cash for S5,500 and credit Interest Revenue for $5,500

Explanation / Answer

Debit cash for $2750 and credit interest revenue for $2750 (110000*5%/2) Option C is correct

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