Question: On August 1 , 2 0 2 5 , Sheridan Company acquired $ 5 5 0 0 0 0 face value 1 0 % bonds

On August 1,2025, Sheridan Company acquired $550000 face value 10% bonds

On August 1,2025, Sheridan Company acquired $550000 face value 10% bonds of Sunland Corporation at 104 plus accrued interest. The bonds were dated May 1,2025, and mature on April 30,2030, with interest payable each October 31 and April 30. The bonds will be held to maturity. What entry should Sheridan make to record the purchase of the bonds on August 1,2025?
Debt Investments
585750
Cash
Debt Investments
Premium on Bonds
Cash
Debt Investments
585750
Interest Revenue
Cash
Debt Investments
572000
Interest Revenue
13750
Cash
585750
of Sunland Corporation at 104 plus accrued interest. The bonds were dated

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