Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and Interest is paid semiannually. The journal entry for the purchase would be. Oa. debit Investments-Evans Company Bonds, $100,000; credit Interest Revenue, $1,500, and Cash, $98,500 Ob. debit Investments-Evans Company Bonds, $100,000, and Interest Receivable $1,500; credit Cash, $101,500 Oc. debit Investments-Evans Company Bonds, $101,500; credit Cash, $101,500 Od. debit Investments-Evans Company Bonds, $100,000; credit Cash, $100,000
Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and Interest is paid semiannually. The journal entry for the purchase would be. Oa. debit Investments-Evans Company Bonds, $100,000; credit Interest Revenue, $1,500, and Cash, $98,500 Ob. debit Investments-Evans Company Bonds, $100,000, and Interest Receivable $1,500; credit Cash, $101,500 Oc. debit Investments-Evans Company Bonds, $101,500; credit Cash, $101,500 Od. debit Investments-Evans Company Bonds, $100,000; credit Cash, $100,000
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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