On May 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 February 1, 2011, will include:
A) a credit to Interest Revenue for $1,200.
B) a credit to Gain on Sale of Investments for $1,200.
C) a debit to Cash for $41,200.
D) a credit to Interest Receivable for $500.
B
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