37) On January 1, Carla Vista Company purchased as an investment a $5000, 4% bond for $5000....
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37) On January 1, Carla Vista Company purchased as an investment a $5000, 4% bond for $5000. The bond pays interest on January 1. The bond is sold on July 1 for $5500 plus accrued interest. Interest has not been accrued since the last interest payment date. What is the entry to record the cash proceeds at the time the bond is sold?
a
Cash | 5600 | |
Debt Investments | 5500 | |
Interest Revenue | 100 |
b
Cash | 5600 | |
Debt Investments | 5000 | |
Gain on Sale of Debt Investments | 500 | |
Interest Revenue | 100 |
c
Cash | 5600 | |
Debt Investments | 5000 | |
Interest Revenue | 600 |
d
Cash | 5500 | |
Debt Investments | 5500 |
Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala
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