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Landmark Corp. buys $500,000 of Schroeter Company's 8%, 5-year bonds payable at par value on September 1. Interest payments are made semiannually. Landmark plans to
Landmark Corp. buys $500,000 of Schroeter Company's 8%, 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. The journal entry to record the purchase should include:
Multiple Choice:
- A debit to Long-Term Investments-AFS $500,000.
- A debit to Short-Term Investments-AFS $500,000.
- A debit to Short-Term Investments-Trading $500,000.
- A debit to Cash $500,000.
- A debit to Long-Term Investments-HTM $500,000.
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