Use the Following Information for Questions

question 24

Multiple Choice

Use the following information for questions.
On January 1, 2018, Burkett Corporation purchased, as a long-term investment, a $25,000, 5% bond, for $21,595. At this time, the market rate of interest was approximately 7%. The bond pays interest on January 1 and July 1. On December 31, 2018, the fair value of the bonds was $23,950.
-What is the entry to record the receipt of the interest on July 1, 2018?

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Definitions:

Incentives

Motivations or rewards designed to encourage specific behaviors or actions from people or organizations.

Information

Data that is processed, organized, or presented in a manner that adds value or understanding to the recipient.

Profit Centers

Segments or units within a business that are responsible for generating profits and are evaluated based on their profitability.

Divisional Profit

The earnings attributable to a specific division of a corporation, often analyzed to assess the division's financial performance.