Learning: Investments QUESTION ANSWER Date Credit Debit 100,000 Jan 1 Assume Babble Manufacturing has excess cash to invest and pays $100,000 to buy $100,000 face value 5%, five year, Stamp Company bonds on January 1 of the current year. The bonds pay interest on June 30 and December 31 each year. Babble plans to hold the bonds to maturity. Accounts Cash Bonds Payable 100,000 The journal entry to record the purchase of the bonds with cash would be: Credit Date Accounts Jan 1 Cash Held-to-Maturity Debt Investments Debit 100,000 100,000 Credit Date Accounts Debit Jan 1 Held-to-Maturity Debt Investments 100,000 Cash 100,000 Credit Date Accounts Debit Jan 1 Bond Payable 100,000 Cash 100,000 I DON'T KNOW YET