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Suppose that $5,000 of 5% bonds were purchased on April 1, 2020 by a company whose year-end is December 31, as a Long Term Investment.
Suppose that $5,000 of 5% bonds were purchased on April 1, 2020 by a company whose year-end is December 31, as a Long Term Investment. Interest dates are April 1 and October 1 The bonds mature 36 months from date of purchase. The purchase price of the bonds was $5,120, and the premium is amortized on a straight-line basis. Assume the proper adjusting entry was made on December 31, 2020, to record accrued interest receivable and amortization of the premium. What will be the total interest revenue recorded by the investor on April 1, 2021? O A. $52.50 OB. $125.00 O C. 562.50 OD. $72.50 Suppose that $5,000 of 5% bonds were purchased on April 1, 2020, by a company whose year-end is December 31, as a Long-Term Investment. Interest dates are April 1 and October 1. The bonds mature 36 months from date of purchase. The purchase price of the bonds was $5 120, and the premium is amortized on a straight-line basis Assume the proper adjusting entry was made on December 31, 2020, to record accrued interest receivable and amortization of the premium. What will be the total interest revenue recorded by the investor on April 1, 2021? OA. $52.50 O B. $125.00 O C. $62.50 O D. $72.50
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