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:

T Procedure

A statistical method used to infer the unknown mean of a population based on a sample mean, especially when the sample size is small.

Non-Normality

A characteristic of a dataset that deviates from the bell-shaped curve associated with a normal distribution, potentially affecting statistical tests.

Skewness

Skewness is a measure of the asymmetry of the probability distribution of a real-valued random variable about its mean, indicating how much the distribution leans towards the left or right.

P-value

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of observing the results given that the null hypothesis is true.