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On August 1, 2011, Varney Co

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On August 1, 2011, Varney Co.acquired 40, $1,000, 9% bonds at 97 plus accrued interest.The bonds were dated May 1, 2011, and mature on April 30, 2017, with interest paid each October 31 and April 30.The bonds will be held to maturity.Under the cost model, the preferred entry to record the purchase of the bonds on August 1, 2011 is On August 1, 2011, Varney Co.acquired 40, $1,000, 9% bonds at 97 plus accrued interest.The bonds were dated May 1, 2011, and mature on April 30, 2017, with interest paid each October 31 and April 30.The bonds will be held to maturity.Under the cost model, the preferred entry to record the purchase of the bonds on August 1, 2011 is

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