Barnes Company purchased $92,000 of 9.5% bonds at par. The bonds mature in six years and are a held-to-maturity security. Which of the following is the correct journal entry to record the receipt of the semiannual interest payment?
A. debit Unrealized Gain-Equity, $4370; credit Cash, $4370.
B. debit Cash, $4370; credit Interest Revenue, $4370.
C. debit Cash, $8740; credit Debt Investments-HTM, $8740.
D. debt Cash, $4370; credit Debt Investments-HTM, $4370.
E. debit Cash, $8740; credit Unrealized Gain-Equity, $8740.
Answer: B
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