Question
Alan Company purchased $400,000 of ABC Co. 5% bonds at 100 plus accrued interest of $4,500. Alan later sold $250,000 of bonds at 97. The
Alan Company purchased $400,000 of ABC Co. 5% bonds at 100 plus accrued interest of $4,500. Alan later sold $250,000 of bonds at 97. The journal entry for the purchase would include acredit to
A. Interest Receivable for $4,500
| B. credit to Interest Revenue for $4,500 |
| C. | debit to Interest Receivable for $4,500 |
| D. debit to Interest Revenue for $4,500 |
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Financial Accounting Australia And New Zealand Edition
Authors: Jerry J. Weygandt
11th Edition
1119668654, 978-1119668657
