Landmark Corp. buys $420,000 of Schroeter Company's 8%, 5-year bonds payable at par value on September 1. Interest payments are made semiannually. Landmark plans to hold the bonds for the 5-year life. When the bonds mature, the journal entry to record the proceeds will be:

A. Debit Cash $420,000; credit Interest Receivable $420,000.
B. Debit Cash $420,000; credit Interest Revenue $420,000.
C. Debit Debt Investments-HTM $420,000; credit Cash $420,000.
D. Debit Cash $420,000; credit Bonds Payable $420,000.
E. Debit Cash $420,000; credit Debt Investments-HTM $420,000.


Answer: E

Business

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