Question

On May 1, 20Y6, Stanton Company purchased $100,000 of Harris Company's 12% bonds at 100 plus accrued interest of $4,000. On June 30, 20Y6, Stanton received its first semiannual interest. On February 1, 20Y7, Stanton sold $80,000 of the bonds at 103 plus accrued interest. The journal entry Stanton will record on February 1, 20Y7, will include a a. credit to Interest Revenue for $2,400. b. credit to Gain on Sale of Investments for $2,400. c. debit to Cash for $82,400 d. credit to Interest Receivable for $1,000.

Answer 1

Answer:

Credit to Gain on Sale of Investments for $2,400