On the first day of the fiscal year. Hawthorne Company obtained an $88.000. 7-year. 5% installment note from Sea Side Bank. The note requires annual payments of $15, 208, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $4, 400 and principal repayment of $10, 808. The journal entry Hawthorne would record to make the first annual payment due on the note would include a debit to cash for $15, 208 credit to notes payable for $10, 808 debit to interest expense for $4.400 debit to notes payable for $15, 208 The adjusting entry to record the amortization of a discount on bonds payable is debit Discount on Bonds Payable, credit Interest Expense debit Interest Expense, credit Discount on Bonds Payable debit Interest Expense, credit Cash debit Bonds Payable, credit Interest Expense On May 1, Pierce Company purchased $60,000 of Stanton Company's 12% bonds at 100 plus accrued interest of $2, 400. On June 30. Pierce received its first semiannual interest. On February 1. Pierce sold $50,000 of the bonds at 103 plus accrued interest. The journal entry Pierce will record on June 30 will include a credit to Interest Revenue for $2, 400 debit to Cash for $3.600 credit to Cash for $2, 400 credit to Interest Receivable for $1, 200 Which of the following stock investments should be accounted for using the cost method? investments of less than 20% investments between 20% and 50% investments of less than 20% and investments between 20% and 50% all stock investments should be accounted for using the cost method