Kendall Corp. purchased at par value $75,000 of Shrem Company's 8% bonds that mature in three-years. The bonds pay interest semiannually on June 1 and December 1. Kendall plans to hold the bonds until they mature. When the bonds mature, Kendall should prepare the following journal entry:
A. debit Cash, $75,000; credit Debt Investments?HTM, $75,000.
B. debit Cash, $6,000; credit, Unrealized Gain-Equity, $6,000.
C. debit Debt Investments?HTM, $75,000; credit Cash, $75,000.
D. debit Cash, $75,000; credit Debt Investments?Trading, $75,000.
E. debit Unrealized Gain-Equity, $6,000; credit Cash, $6,000.
Answer: A
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