Barnes Company purchased $86,000 of 8.0% bonds at par. The bonds mature in six years and are a held-to-maturity security. Which of the following is the correct journal entry to record the receipt of the semiannual interest payment?

Multiple Choice

a. debit Cash, $6,880; credit Long-Term InvestmentsHTM, $6,880.

b. debt Cash, $3,440; credit Long-Term InvestmentsHTM, $3,440.

c. debit Unrealized Gain-Equity, $3,440; credit Cash, $3,440.

d. debit Cash, $3,440; credit Interest Revenue, $3,440.

e. debit Cash, $6,880; credit Unrealized Gain-Equity, $6,880.