On January 1, Vega Company purchased as an investment a $1,000, 6% bond for $1,000. The bond pays Interest on January 1. The bond is sold on July 1 for $1,100 plus accrued interest. Interest has not been accrued since the last interest payment date. What is the entry to record the cash proceeds at the time the bond is sold? Cash 1,130 Debt Investments 1,100 Interest Revenue 30 Cash 1,100 Debt Investmonts 1,100 Cash 1,130 + Debt Investments 1,000 Gain on Sale of Debt Investments 100 Interest Revenue 30 Cash 1,130 Debt Investments 1,000 Interest Revenue 130
On January 1, Vega Company purchased as an investment a $1,000, 6% bond for $1,000. The bond pays Interest on January 1. The bond is sold on July 1 for $1,100 plus accrued interest. Interest has not been accrued since the last interest payment date. What is the entry to record the cash proceeds at the time the bond is sold? Cash 1,130 Debt Investments 1,100 Interest Revenue 30 Cash 1,100 Debt Investmonts 1,100 Cash 1,130 + Debt Investments 1,000 Gain on Sale of Debt Investments 100 Interest Revenue 30 Cash 1,130 Debt Investments 1,000 Interest Revenue 130
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 7MCQ
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