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On June 1, 2021, Conundrum Company purchased at 101 a $300,000 face value bond paying 6%, with interest payable every January 1 and July
On June 1, 2021, Conundrum Company purchased at 101 a $300,000 face value bond paying 6%, with interest payable every January 1 and July 1. Brokerage fees were $5,000. Conundrum records one compound journal entry on June 1. The net entry to record this transaction would include: Select one: a. A credit to Cash for $308,000 b. A debit to Interest Receivable for $3,000 c. A debit to Investment Expense for $5,000 d. A debit to Bond Investment for $308,000 e. A credit to Premium on Bond Investment for $3,000
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