QUESTION 8 A company purchased $120,000 of 5% bonds on May 1 at par value. The bonds pay interest on March 1 and September 1. The amount of interest accrued on December 31 (the company's year-end) would be: $1,500. $1,000. $2,500. $1,250. $2,000. QUESTION 9 On March 1, Conwing Company purchased short-term investments in available-for-sale debt securities at a cost of $50,000 cash. The journal entry on December 15 when Conwing sells 25% of these securities ($12,200 cost) for $13,900 includes a: Debit to Cash for $12,200. Credit to Debt Investments-Available-for-Sale (AFS) for $13,900. O Credit to Gain on Sale of Debt Investment for $1,700. Credit to Interest Revenue for $1,700. Debit to Gain on Sale of Debt Investments for $1,700.