Use the Following Information to Solve the Following Questions

question 42

Multiple Choice

Use the following information to solve the following questions:
On July 1, 2020, 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, 2020 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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Definitions:

Eating Fruits

The consumption of fruit, which is an essential part of a balanced diet, providing fiber, vitamins, and minerals.

MyPlate Food Guide

A visual guide for balanced eating created by the USDA, depicting a plate divided into sections for vegetables, fruits, grains, proteins, and dairy to encourage healthy meal planning.

2,000-Calorie

A reference daily intake level used for nutrition labeling, representing an estimated amount of calories a typical adult should consume daily to maintain their weight.

U.S. Department of Agriculture

A federal department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food.