27. A company paid $58,200 to acquire 7% bonds with a $60,000 maturity value. The company intends to hold the bonds to maturity. At the date of maturity the cash proceeds the investor will receive are:

Select one:

a. $64,200

b. $60,000

c. $0

d. $55,800

e. $58,200

28. An investor paid $48,500 cash to acquire 1,000 shares of $5 par value common stock of ABC Corporation. The investor has insignificant influence in ABC Corporation. The correct entry to record the purchase of the investment is:

Select one:

a. Debit Cash $50,000; credit Stock Investments $50,000

b. Debit Stock Investments $48,500; debit Investment Expense $1,500; credit Cash $50,000

c. Debit Stock Investments $50,000; credit DIscount on Investment $1,500; credit Cash $48,500

d. Debit Stock Investments $50,000; credit Cash $50,000

e. Debit Stock Investments $48,500; credit Cash $48,500