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Consider the following facts: - On April 1, 2017 Company A purchased 10%, $800,000 bonds of Company B at par plus accrued interest. - Company
Consider the following facts: - On April 1, 2017 Company A purchased 10%, $800,000 bonds of Company B at par plus accrued interest. - Company classified the bonds as an investment in trading securities. - The bonds pay interest on June 30 and December 31 each year. The entry by Company A on April 1, 2017, would include a debit to Interest Expense of $20,000. credit to Interest Income of $20,000. credit to Cash of $820,000. None of these answers are correct. debit to Investment in Trading Securities of $820,000.
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