Alan Company purchased $400,000 of ABC Co 5% bonds at 100 plus accrued interest of $4,500 . Alan later sold $250,000 of bonds at 97 . The journal entry for the purchase would include a
a. credit to Interest Receivable for $4,500
b. credit to Interest Revenue for $4,500
c. debit to Interest Receivable for $4,500
d. debit to Interest Revenue for $4,500
c
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Long-term investments:
A. Can include funds designated for a special purpose, or investments in land not used in the company's operations. B. Are current assets. C. Are expected to be converted into cash within one year. D. Include only equity securities. E. Must be readily convertible to cash.
On an accrual basis income statement, revenues equal cash receipts and expenses equal cash
expenditures. Indicate whether the statement is true or false
China's decision regarding restrictions on foreign exchange transactions is a ________ political risk because it affects all multinational companies.
A. multidimensional B. standard C. micro D. macro
Janet received stock worth $4,000 at the time it was gifted to her by her father. He had acquired the stock several years earlier for $2,200. He paid no gift tax on the transfer to Janet. Janet sells the stock for $6,600 two months after receiving it. What are the nature and amount of Janet’s gain or loss?
What will be an ideal response?