Journal entry to record the purchase paid semi-annually, Accounting Basics

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Journal entry to record the purchase paid semi-annually

Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the purchase would be:

a. Debit: Investment in Bonds $100,000; Credit: Interest Revenue $1,500 and Cash $98,500

b. Debit: Investment in Bonds $100,000 and Interest Receivable $1,500; Credit: Cash $101,500

c. Debit: Investment in Bonds $101,500; Credit: Cash $101,500

d. Investment in Bonds $100,000; Credit: Cash $100,000

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Accounting Basics: Journal entry to record the purchase paid semi-annually

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Accounting Basics: Journal entry to record the purchase paid semi-annually

Reference No:- TGS053223

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Full economic costs of the activities

Q : Appropriate discount rate associated-perpetual cash flow

Q : Find rates of return for the three types of investments

Q : Use for storing receipts and payments

Q : Journal entry to record the purchase paid semi-annually

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Journal entry to record the purchase paid semi-annually

Reference No:- TGS053223

Recent Questions Asked Accounting Basics

Q : Full economic costs of the activities

Q : Appropriate discount rate associated-perpetual cash flow

Q : Find rates of return for the three types of investments

Q : Use for storing receipts and payments

Q : Journal entry to record the purchase paid semi-annually

Q : Analyze firm-s underlying structure in terms of five forces

Q : Prepare the general journal entries required

Q : Determining fundamentals of derivatives markets

Q : Journal entry to record the sale of bonds

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