16.1 Accounting for Debtestments On January 1, 2019. Royal Products purchases 100 Pinnacle Inc. 8%, 10-year, $1,000 bonds, while Regal Enterprises purchases 110 Apex Inc. 7.8%, 10-year $1.000 bonds. Both bonds pay interest annually on January 1, and both Royal's fiscal year and Regal's fiscal year end on December 31. Later, on January 1, 2020, Royal sells 25 of its bonds, while Regal sells 30 of its bonds. When Royal and Regal makejournal entries related to their bond investments on January 1, 2021, Royal will credit for less than Regal will Interest Receivable: $400 Interest Revenue: $400 Interest Revenue: $240 Interest Receivable: $240