KC Company purchased $100,000 of 8 percent bonds of Evermaster Corporation on January 1, 2009, at a discount, paying $92,278. The bonds mature January 1, 2014 and yield 10%; interest is payable each July 1 and January 1.

1. KC Company records the receipt of the first interest payment on July 1, 2009, including

a. a credit to Interest Revenue at 4,000

b. a credit to Interest Revenue at 4,614 c. a debit to Interest Revenue at 4,000 d. a debit to Interest Revenue at 4,614

2. The amount of total interest revenue recognized in the year of 2009 is equal to: a. 8,000

b. 9,259 c. 8,614 d. 8,645