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?

Cash	5600
Debt Investments		5500
Interest Revenue		100

Cash	5600
Debt Investments		5000
Gain on Sale of Debt Investments		500
Interest Revenue		100

Cash	5600
Debt Investments		5000
Interest Revenue		600

Cash	5500
Debt Investments		5500

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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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Posted Date: Mar 11, 2024 09:12 AM

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37) On January 1, Carla Vista Company purchased as an investment a $5000, 4% bond for $5000....

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Government and Not for Profit Accounting Concepts and Practices

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