Question
Fox Co. bought $400,000, 9%, 7-year bonds for $420,000 from Owl Co. If Fox intends to sells these bonds 6 months after purchase, what is
Fox Co. bought $400,000, 9%, 7-year bonds for $420,000 from Owl Co. If Fox intends to sells these bonds 6 months after purchase, what is the entry that Fox should prepare on purchasing these bonds from Owl?
Group of answer choices
Dr Trading Securities 420,000 & Cr. Cash 420,000
Dr Bonds Payable 400,000 & Premium on Bonds Payable 20,000 & Cr. Cash 420,000
Dr Trading Securities 400,000 & Premium on Trading Securities 20,000 & Cr. Cash 420,000
Dr Available for Sale Securities 420,000 & Cr. Cash 420,000
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Accounting Information Systems Controls and Processes
Authors: Leslie Turner, Andrea Weickgenannt, Mary Kay Copeland
3rd edition
1119329566, 1119329565, 1119386179, 1119302110, 9781119302117 , 978-1119329565
