On April 1,2014,Ziba Inc.purchased as a temporary investment $100,000,face amount,10% U.S.Treasury notes;they pay interest semiannually on January 1 and July 1.The notes were purchased at 102.Which of the following entries correctly records this purchase?
A) Trading Securities--10% U.S.Treasury Notes.100,000
Interest Receivable.........................2,500
Premium on Trading Securities...............2,000
Cash.....................................104,500
B) Trading Securities--10% U.S.Treasury Notes.102,000
Interest Receivable.........................2,500
Cash.....................................104,500
C) Trading Securities--10% U.S.Treasury Notes.100,000
Interest Receivable.........................4,500
Cash.....................................104,500
D) Trading Securities--10% U.S.Treasury Notes.102,000
Cash.....................................102,000
Correct Answer:
Verified
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