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On January 1, Skills Company purchased as a short-term investment a $1,000, 6% bond for $1,000. The bond pays interest on January 1 and July
On January 1, Skills Company purchased as a short-term investment a $1,000, 6% bond for $1,000. The bond pays interest on January 1 and July 1. The bond is sold on October 1 for $1,200 plus accrued interest. Interest has not been accrued since the last interest payment date. What is the entry to record the cash proceeds at the time the bond is sold? Cash 1,200 1,000 200 Debt Investments Gain on Sale of Debt Investments Cash 1,215 Debt Investments Gain on Sale of Debt Investments nterest Revenue 1,000 200 15 Cash 1,215 Debt Investments Interest Revenue 1,200 15 Cash 1,200 Debt Investments 1,200
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