Kendall Corp. purchased at par value, $160,000 of Barker Company's 7% bonds that mature in 10 months. The bonds pay interest semiannually on June 1 and December 1. Kendall plans to hold the bonds until they mature. The journal entry to record Kendall's purchase of the bonds is:
A. debit Debt Investments-HTM $160,000; credit Cash, $160,000.
B. debit Cash, $160,000; credit Short-Term Investments-HTM $160,000.
C. debit Cash, $169,333; credit, Short-Term Investments-HTM $169,333.
D. debit Cash, $160,000; credit Long-Term Investments-HTM $160,000.
E. debit Long-Term Investments-HTM $160,000; credit Cash $160,000.
Answer: A
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