If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold until the bond maturity date, the interest revenue recognized when each semiannual interest payment is received would be recorded as a
A. credit to Cash, $2,500.
B. credit to Interest Revenue, $2,500.
C. debit to Held-to-Maturity Debt Investments, $2,500.
D. debit to Dividend Revenue, $2,500.
Ans: B. credit to Interest Revenue, $2,500.
Business
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