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On August 1, 2010, Dambro Co. acquired 200, $1,000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2010, and mature

On August 1, 2010, Dambro Co. acquired 200, $1,000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2010, and mature on April 30, 2016, with interest paid each October 31 and April 30. The bonds will be added to Dambro available-for-sale portfolio. The preferred entry to record the purchase of the bonds on August 1, 2010 is A. Available-for-Sale Securities...........................................198,500 Cash.......................................................198,500 B. Available-for-Sale Securities...................................... 194,000 Interest Receivable.................................................4,500 Cash.......................................................198,500 C. Available-for-Sale Securities.................................. 194,000 Interest Revenue................................................4,500 Cash................................................. 198,500 D. Available-for-Sale Securities...................................... 200,000 Interest Revenue.................................................... 4,500 Discount on Debt Securities............................ 6,000 Cash .......................................................198,500 (Points: 5) A. B. C. D

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