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On January 1, 2022, Warner Inc.purchased 3.5%, $50,000 face value Jackson Corp.bonds at face value.Interest is payable semi-annually on July 1 and January 1.The bonds are classified as trading investments.The bonds were sold on July 2, 2022 for $53,000.
-Warner's entry to record the purchase would include a debit to
A)Trading Investments for $50,000.
B)Cash for $50,000.
C)Bonds Payable for $50,000.
D)Long-Term Investments for $50,000.

Question

Use the following information for questions 
On January 1, 2022, Warner Inc.purchased 3.5%, $50,000 face value Jackson Corp.bonds at face value.Interest is payable semi-annually on July 1 and January 1.The bonds are classified as trading investments.The bonds were sold on July 2, 2022 for $53,000.
-Warner's entry to record the purchase would include a debit to
A)Trading Investments for $50,000.
B)Cash for $50,000.
C)Bonds Payable for $50,000.
D)Long-Term Investments for $50,000.

Quizplus · Accepted Answer

Trading Investments are debited when trading securities are purchased.

Use the Following Information for Questions