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54) On January 1, 2017, Carmello Corporation purchased 4% bonds with a face value of$100,000 for $92,000. Carmello Corporation intends to hold the bonds until

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54) On January 1, 2017, Carmello Corporation purchased 4% bonds with a face value of$100,000 for $92,000. Carmello Corporation intends to hold the bonds until the maturity date of January 1, 2027. Interest is paid semiannually on January 1 and July 1. The company uses the straight-line amortization method for discounts and premiums. What journal entry(ies) is(are) prepared on July 1, 20177 A) debit Cash $2000 and credit Interest Revenue $2000; debit Held-to-Maturity Investment in Bonds $400 and credit Interest Revenue $400 B) debit Interest Receivable $2000 and credit Interest Revenue $2000; debit Held-to-Maturity Investment in Bonds $400 and credit Interest Revenue $400 C) debit Cash $2000 and credit Interest Receivable $2000 D) debit Cash $4000 and credit Interest Revenue $4000

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