Landmark Corp. buys $300,000 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 $300,000; credit Debt Investments-HTM $300,000.
B. Debit Long-Term Investments-HTM $300,000; credit Cash $300,000.
C. Debit Cash $300,000; credit Bonds Payable $300,000.
D. Debit Cash $300,000; credit Interest Receivable $300,000.
E. Debit Cash $300,000; credit Interest Revenue $300,000.
Answer: A
You might also like to view...
Which of the following statements about job interviews is most accurate?
A) The more an individual learns about the interview process, the better prepared he or she will be. B) Job interviews allow employers and candidates opportunities to evaluate one another. C) Most people find job interviews stressful. D) All answer choices are accurate statements about job interviews.
Too much ______ is dangerous to adaptation.
a. routine b. intervention c. development d. change
Tim purchased a 10-payment whole life insurance policy 15 years ago. Tim would like to donate this paid-up policy to a charity. Under which policy provision can Tim transfer all ownership rights in the policy to the charity?
A) absolute assignment B) extended term nonforfeiture option C) reinstatement D) collateral assignment
A stock dividend is recorded with a transfer from:
A. Contributed capital to assets. B. Retained earnings to assets. C. Contributed capital to retained earnings. D. Assets to contributed capital. E. Retained earnings to paid-in capital.