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Assume that on January 1, First Union Co. purchases for cash a $400,000 of Medford City 5% bond at 100 plus accrued interest of $4,500
Assume that on January 1, First Union Co. purchases for cash a $400,000 of Medford City 5% bond at 100 plus accrued interest of $4,500 as an investment on January 1. What accounts would be debited for the $400,000 in the journal entry to record the investment?
| Investment in Medford City Bonds | ||
| Interest receivable | ||
| Cash | ||
| Bonds Payable |
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