On January 1,2015,Benson Company Purchases $100,000,6% Bonds at a Price

question 42

Multiple Choice

On January 1,2015,Benson Company purchases $100,000,6% bonds at a price of 95 and a maturity date of January 1,2020.Benson Company plans to hold the bonds until their maturity date.Interest is paid semiannually,on January 1 and July 1.Benson Company has a calendar year end.The adjusting entry on December 31,2015 is:

• A)debit Cash $3,000 and credit Interest Revenue $3,000.
• B)debit Cash $6,000 and credit Interest Revenue $6,000.
• C)debit to Interest Receivable $3,000,debit Held-to-Maturity Investment in Bonds for $500 and credit Interest Revenue $3,500.
• D)debit to Interest Receivable $6,000 and credit Interest Revenue $6,000.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.

Irrational Fear

An intense and persistent fear of specific situations, objects, activities, or persons that is excessive and unreasonable, given the reality of the threat.

Phobia

An extreme or irrational fear or aversion to something, often leading to avoidance behaviors.

Conditioned Stimulus

A stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.