Financial Accounting

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Effect of Interest Receipt from Bond Investment


GOGO Technology Inc. invested \$100,000 for a \$100,000 face value, 5%, five-year bond on January 1, 2015. The bond issuer pays interest semiannually on July 1 and December 31 every year.

When the company received the first interest payment on July 1, 2015, which account on the balance sheet was affected?