Question
Use this information for Pierce Company to answer the following question. On May 1, Pierce Company purchased $60,000 of Stanton Companys 12% bonds at 100
Use this information for Pierce Company to answer the following question. On May 1, Pierce Company purchased $60,000 of Stanton Companys 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 February 1 will include a:
a. credit to Cash for $52,500
b. credit to Gain on Sale of Investments for $1,500
c. credit to Interest Revenue for $1,500
d. credit to Interest Receivable for $600
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