Barr Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2010 for $61,250. This includes a brokerage commission of $1,250.

The journal entry to record this investment includes a debit to

1. Debt Investments for $60,000.Debt Investments for $61,250.Cash for $61,250.Stock Investments for $60,000.
2. Debt Investments for $61,250
3. Cash for $61,250
4. Stock Investments for $60,000.