Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2014 for $60,000. The journal entry to record this investment includes a debit to

Name: Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2014 for $60,000. The journal entry to record this investment includes a debit to
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

The debit entry should be to Debt Investments for the amount paid for the bonds, which is $60,000. The other options do not accurately reflect the transaction.

Bay Company Acquires 60, 8%, 5 Year, $1,000 Community Bonds