Question
ABC Company purchased an investment in bonds of XYZ Company 10% bonds at par value of $30,000. Interest is paid annually on the bonds. ABC
ABC Company purchased an investment in bonds of XYZ Company 10% bonds at par value of $30,000. Interest is paid annually on the bonds. ABC Company's journal entry to record the interest should include a a.credit to Interest Income for $3,000. b.credit to Interest Income for $1,500. c.credit to Investment in Trading Securities for $3,000. d.debit to Investment in Trading Securities for $3,000.
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
11th edition
1111571260, 978-1111571269
