Use the Following Information for Questions

question 87

Multiple Choice

Use the following information for questions.
On July 1, 2017, Harry Ltd.purchased $200,000 (par value) of Prince's 8% bonds.Because the market rate was 9%, Harry purchased them for $186,992.The bonds pay interest semi-annually on December 31 and June 30.Harry uses the amortized cost model and the effective-interest method to recognize interest income on bond investments.
-Rounding values to the nearest dollar (if necessary) , the entry to recognize receipt of the first interest payment on December 31, 2017 will include a

• A)debit to Cash of $9,000.
• B)credit to Interest Income of $8,415.
• C)debit to Cash of $8,415.
• D)credit to Interest Income of $8,000.

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