Use the Following Information to Solve the Following Questions

Use the following information to solve the following questions:
On July 1, 2020, Harry Ltd. purchased $ 200,000 (par value) of Prince's 8% bonds. Because the market rate was 9%, Harry purchased them for $ 186,992. The bonds pay interest semi-annually on December 31 and June 30. Harry 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 a

A) debit to Cash of $ 9,000.
B) credit to Interest Income of $ 8,415.
C) debit to Cash of $ 8,415.
D) credit to Interest Income of $ 8,000.

Correct Answer:

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