21. Jordan Company acquires 50, 8%, 10 year, $1,000 Community bonds on January 1, 2020 for $50,000.

The journal entry to record this investment includes a debit to

a. Debt Investments for $50,000.

b. Debt Investments for $55,000.

c. Cash for $50,000.

d. Stock Investments for $50,000.

8. . On October 1, Bannon Carpet Company borrows $100,000 from Continental Bank on a 4-month, $100,000, 12% note. The entry by Bannon Carpet Company to record payment of the note and accrued interest on February 1 is (assume a calendar year)

a. Notes Payable 112,000

Cash 112,000

b. Notes Payable 100,000

Interest Payable 4,000

Cash 104,000

c. Notes Payable 100,000

Interest Payable 12,000

Cash 112,000

d. Notes Payable 100,000

Interest Expense 1,000

Interest Payable 3,000

Cash 104,000