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(2 points) On January 1, 2024, Rupar Retailers purchased $125,000 of Anand Company bonds at a discount of $5,000. The Anand bonds pay 7% interest
(2 points) On January 1, 2024, Rupar Retailers purchased $125,000 of Anand Company bonds at a discount of $5,000. The Anand bonds pay 7% interest but were purchased when the market interest rate was 8% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Rupar accounts for the bonds as a held-to-maturity investment and uses the effective interest method. In Rupar's December 31, 2024, journal entry to record the second period of interest, Rupar would record a credit to interest revenue of: A. $4,800. B. $4,375 C. $5,000 D. $4,817
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