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schepotkina [342]
3 years ago
11

On June 1, $50,000 of treasury bonds were purchased between interest dates. The broker commission was $500. The bonds pay intere

st at 12%, which is paid semiannually on January 1 and July 1. What is the total cost to be debited to the Investment—Treasury Bonds account?
Business
1 answer:
timurjin [86]3 years ago
4 0

Answer:

$50,500

Explanation:

The investment treasury bonds account must be debited by $50,500 which includes the face value of the bonds ($50,000) and the broker's commission ($500). Investment accounts only record the purchase price of the bonds, they do not record any accrued interests.

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