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On August 1, 2015, Eagle Industries acquired 400, $1,000, 9% bonds at 97, plus accrued interest. The bonds were dated May 1,2015, and matured on
On August 1, 2015, Eagle Industries acquired 400, $1,000, 9% bonds at 97, plus accrued interest. The bonds were dated May 1,2015, and matured on April 30, 2018. Interest was paid each October 31 and April 30. The bonds will be added to Eagle's available-for-sale portfolio. Select the best way to record the purchase of the bonds on August 1,2015. Investments in available-for-sale securities: $397,000; cash: $397,000 O Investments in available-for-sale securities: $388,000; interest receivable: $9,000; cash: $397,000 Investments in available-for-sale securities: $388,000; interest income: $9,000; cash: $397,000 Investments in available-for-sale securities: $400,000; interest income: $9,000; discount on investments in available-for-sale securities: $12,000; cash: $397,000
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