On January 1 of the current year, a company paid $200,000 cash to purchase 6%, 10-year bonds, with a par value of $200,000; interest is paid semiannually each June 30 and December 31. The company intends to hold these bonds until they mature. Prepare the journal entry for the interest received on December 31 of the current year.
What will be an ideal response?
| 12/31 | Cash (200,000 * 0.06 * 1/2) | 6,000 | ? |
| ? | Interest Revenue | ? | 6,000 |
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