Marcy's, Inc., operates nearly 850 Marcy's and Bloomington's department stores globally. The company does more than $24 billion in sales each year.

Assume that as part of its cash management strategy, Marcy's purchased $11.3 million in bonds at par for cash on July 1 of the current year. The bonds pay 9 percent interest annually, with payments on June 30 and December 31, and mature in 5 years. Marcy's plans to hold the bonds until maturity.

Q

Record the receipt of interest on December 31 of the current year.