On July 1, 2019, Cyclic Inc issued $1,000,000 in principal of 6% bonds due in July 2024. The bond pays interest quarterly on January 2, April 1, July 1, and October 1. On July 1, 2020, immediately following an interest payment. Epimetheus Bank purchased $5000 in face value of these bonds for $4501. Epimetheus Bank intends to trade this bond as part of its business operations. When Epimetheus Bank purchased the bond, it calculated that the historical market rate was 9%. When Epimetheus Bank received the interest payment on October 1,2020, what were the journal entries? Select all that apply.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On July 1, 2019, Cyclic Inc issued $1,000,000 in principal of 6% bonds due in July 2024. The bond pays interest quarterly on January 2, April 1, July 1, and October 1.

On July 1, 2020, immediately following an interest payment. Epimetheus Bank purchased $5000 in face value of these bonds for $4501. Epimetheus Bank intends to trade this bond as part of its business operations. When Epimetheus Bank purchased the bond, it calculated that the historical market rate was 9%.

When Epimetheus Bank received the interest payment on October 1,2020, what were the journal entries? Select all that apply.

Cr. Interest revenue $75

Dr. Amortization of discount on trading debt $26

Cr. Interest revenue $101

Dr Cash $75

Dr Cash $101

Cr. Trading debt receivable $26

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