On September 30, 2019, Angel Outfitters Invested in 10-Year, $900,000

On September 30, 2019, Angel Outfitters invested in 10-year, $900,000, 7% bonds of ABC Co. These bonds were dated January 1, 2019, and pay interest annually on December 31. Angel paid face value plus accrued interest for these bonds, and intends to hold these bonds until maturity. Which of the following is the correct journal entry to record this investment?

A) $$\begin{array} { | l | r | r | } \hline \text { Held-to-Maturity Debt Investment - Cost } & 900,000 & \\\hline \text { Interest Receivable } & 47,250 & \\\hline \text { Cash } & & 947,250 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Held-to-Maturity Debt Investment - Cost } & 900,000 & \\\hline \text { Discount on Held-to-Maturity Investment } & 47,250 & \\\hline \text { Cash } & & 947,250 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Available-for-Sale Debt Investment - Cost } & 900,000 & \\\hline \text { Discount on Held-to-Maturity Investment } & 47,250 & \\\hline \text { Cash } & & 947,250 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Available-for-Sale Debt Investment - Cost } & 900,000 & \\\hline \text { Discount on Available-for-Sale Investment } & 47,250 & \\\hline \text { Cash } & & 947,250 \\\hline\end{array}$$