On July 1, 2020, Charles Ltd. purchased $200,000 of Prince Co.'s 8%, 10-year bonds. The market rate was 9%, and Charles purchased the bonds for $186,992. The bonds pay interest semi-annually on December 31 and June 30. Charles uses the amortized cost model and the effective-interest method to recognize interest income on bond investments. Rounding values to the nearest dollar (if necessary), the entry to recognize receipt of the first interest payment on December 31, 2020 will include:

Question 5 options:

	DR Cash $9,000
	CR Interest Income $8,000
	DR Cash $8,415
	CR Interest Income $8,415