1. Help me selecting the right answer. Thank you **Journal Entry for Corporate Bonds Transaction**Advanced Electronics invests $120,000 to acquire $120,000 face value, 6%, five-year corporate bonds on December 31, 2024. The bonds pay interest semiannually on June 30 and December 31 every year until maturity. Assume Advanced Electronics uses a calendar year. Based on the information provided, which of the following is the journal entry for the transaction on December 31, 2025?- ○ A debit to Cash for $3,600; and a credit to Interest Revenue for $3,600.- ○ A debit to Interest Revenue for $3,600; and a credit to Cash for $3,600.- ○ A debit to Interest Revenue for $7,200; and a credit to Cash for $7,200.- ○ A debit to Cash for $7,200; and a credit to Interest Revenue for $7,200.

The the bonds are long term sources of finance and bonds carry the annual interest payments and face value is paid on the expiration of bond periods.Option D is correct A debit to cash $7200 for coupon payment, and there will be credit to the interest revenue of $7200 Explantion Face value of bond=$120000 Coupon rate=6% Coupon payment= Face value of bond x coupon rate=120000 x 0.06=$7200 Cash received =$7200 So there will be debit entery for cash received. There will be credit entery for interest revenue for $7200 Debit Credit Cash from bonds $7200 Interest Revnue $7200

Business

Accounting

ually on June 30 and December 31 every year until maturity. Ass the following is the journal entry for the transaction on Decemb bit to Cash for $3,600; and a credit to Interest Revenue for $3,600. bit to Interest Revenue for $3,600; and a credit to Cash for $3,600. bit to Interest Revenue for $7,200; and a credit to Cash for $7,200. bit to Cash for $7,200; and a credit to Interest Revenue for $7,200.

ually on June 30 and December 31 every year until maturity. Ass the following is the journal entry for the transaction on Decemb bit to Cash for $3,600; and a credit to Interest Revenue for $3,600. bit to Interest Revenue for $3,600; and a credit to Cash for $3,600. bit to Interest Revenue for $7,200; and a credit to Cash for $7,200. bit to Cash for $7,200; and a credit to Interest Revenue for $7,200.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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