Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An investor purchased at par value $75,000 of Cort's 8% bonds, that mature in three-years. The bonds pay interest semiannually on June 1 and December
An investor purchased at par value $75,000 of Cort's 8% bonds, that mature in three-years. The bonds pay interest semiannually on June 1 and December 1. The investor plans to hold the bonds until they mature. When the bonds mature, the investor should prepare the following journal entry: A. debit Long-Term Investments-HTM, $75,000; credit Cash, $75,000. B. debit Cash, $6,000; credit, Unrealized Gain-Equity, $6,000. C. debit Cash, $75,000; credit Long-Term InvestmentsHTM, $75,000. D. debit Unrealized Gain-Equity, $6,000; credit Cash, $6,000. E. debit Cash, $75,000; credit Long-Term InvestmentsTrading, $75,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started