On April 1, 2010, Stanton Company purchased $50,000 of Harris Company's 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2010, Stanton received its first semiannual interest. On February 1, 2011, Stanton sold $40,000 of the bonds at 103 plus accrued interest. The journal entry Stanton will record on April 1, 2010, will include:
A) a credit to Interest Payable for $2,000.
B) a debit to Investments - Harris Company for $52,000.
C) a credit for Cash of $50,000.
D) a debit to Investments - Harris Company for $50,000.
D
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On October 31, Michael Corporation signed a one-year contract to provide services to Love Company for $80,000 . Love will pay for the services on November 1 . Using the accrual basis of accounting, when should Michael Corporation recognize revenue?
a. November 1 of the current year when the cash is received from Harris b. On October 31 of the next year when all services have been provided c. Throughout the year as the revenue is earned d. At December 31 of the current year, and October 31 of the next year
In general, personal selling is used more with complex, expensive, and risky goods and in markets with fewer and larger sellers
Indicate whether the statement is true or false
Ezra wants to develop the collective brilliance in his organization. He should employ which of the following methods to best accomplish this?
A. Delphi method B. gut instinct method C. experimental method D. research method
Choose the correct word in parentheses. There (is, are) no good reason to continue the old policy