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Leonard Technologies invests $68,000 to acquire $68,000 face value, 12%, five-year corporate bonds on December 31, 2014. The

Amazon Services, Inc. invests its excess cash in Nile Technologies, Inc. and acquires 3,000 shares for $57.00 per share. Amaz

Gaines Corporation invested $120,000 to acquire 22,000 shares of Owens Technologies, Inc. on March 1, 2018. On July 2, 2019,

Premier Services, Inc. pays $2,250,000 to acquire 35% of voting stock of Blue Investments, Inc. on March 5, 2019. Which of th

Global Commerce Corporation purchased trading debt investments for $22,000 on December 31, 2018. There is a decrease of $5,20

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Answer #1

The correct answer is D) a credit to interest revenue for $4,080.

Supporting explanations:

Interest revenue is income and it always has credit balance so when it is earned, it is credited. The correct journal entry is prepared below -

Date Account Titles and Explanations Debit Credit
Dec. 31, 2018 Accounts Receivable $4,080
   Interest Revenue ($68,000*12/100*6/12 months) $4,080
(To record the interest earned on credit)

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