Question
Landmark Corp. buys $440,000 of Schroeter Company's 9%, 5-year bonds payable, at par value on September 1. Interest payments are made semiannually. Landmark plans to
Landmark Corp. buys $440,000 of Schroeter Company's 9%, 5-year bonds payable, at par value on September 1. Interest payments are made semiannually. Landmark plans to hold the bonds for the 5-year life. When the bonds mature, the journal entry to record the proceeds will be: Multiple Choice Debit Cash $440,000; credit Interest Receivable $440,000. Debit Cash $440,000; credit Debt InvestmentsHTM $440,000. Debit Long-Term InvestmentsHTM $440,000; credit Cash $440,000. Debit Cash $440,000; credit Bonds Payable $440,000. Debit Cash $440,000; credit Interest Revenue $440,000.
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