On July 1, 2025, Beauty Hotels Corp. issued $600,000 of 10% bonds, dated July 1. The bonds mature in ten years, and interest is payable semiannually on June 30 and December 31. The market interest rate for bonds of similar risk and maturity is 12%. Joe, Inc. purchased the entire bond issue. On January 1, 2027, Titanic Corp. decided to sell its debt investment for $550,000, while the bonds had an amortized cost of $580,000. What would Titanic's journal entry to record the sale of the bonds include? 1 point Debit Cash for $550,000, Debit Loss on Sale of Investments for $30,000, Debit Discount on Bond Investment for $20,000, and Credit Investment - Bonds for $600,000. Debit Cash for $550,000, Debit Loss on Sale of Investments for $50,000, Credit Investment - Bonds for $600,000, and Credit Discount on Bond Investment for $30,000. Debit Loss on Sale of Investments for $50,000, Debit Cash for $550,000, Credit Investment - Bonds for $600,000, and Credit Discount on Bond Investment for $30,000. Debit Loss on Sale of Investments for $30,000, Debit Cash for $550,000, Credit Investment - Bonds for $600,000, and Credit Discount on Bond Investment for $20,000.

Answer rating: 100% (QA)

Answer To record the sale of the bonds by Titanic Corp on January 1 2027 the journal entry would be ... View the full answer