Question

Jacks Corporation purchases $200,000 bonds plus accrued interest for 2 months of $2,000 from Kennedy Company on March 1. The bonds have an annual interest rate of 6% payable on June 30 and December 31. The entry to record the purchase of the bonds would include a
a. debit to Interest Receivable for $2,000
b. debit to Investment in Bonds for $202,000
c. credit to Interest Revenue for $2,000
d. debit to Cash for $200,000

Answer 1

Answer:

A. debit to Interest Receivable for $2,000