Journal entry to record the receipt of interest

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Reference no: EM131224092

Clinton, Inc. purchased $100,000 of Hope Corporation bonds at 100. The bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the receipt of interest on the next interest payment date would be:

a. Debit: Interest Revenue $4,000; Credit: Cash $4,000.

b. Debit: Cash $8,000; Credit: Interest Revenue $8,000.

c. Debit: Cash $4,000; Credit: Interest Revenue $4,000.

d. Debit: Cash $4,000; Credit: Interest Receivable $4,000.

Reference no: EM131224092

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