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Tinker Corporation has excess cash to invest and pays $500,000 to buy 5%, five-year bonds of Harris Corporation, at face value, on June 30, 2024.
Tinker Corporation has excess cash to invest and pays $500,000 to buy 5%, five-year bonds of Harris Corporation, at face value, on June 30, 2024. The bonds pay interest on June 30 and December 31. Tinker intends to and has the ability to hold the bonds to maturity. The bonds are disposed of, at face value, on June 30, two years later. The journal entry for June 30, 2024 is OA. Cash 500,000 Equity Investments 500,000 B. Cash 500,000 Held-to-Maturity Debt Investments 500,000 OC. Held-to-Maturity Debt Investments 500,000 Cash 500,000 D. Equity Investments 500,000 Cash 500,000
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