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Patton Company purchased $400,000 of 10% bonds of Scott Co.on January 1, 2011, paying $376,100.The bonds mature January 1, 2021; interest is payable each July 1 and January 1.The discount of $23,900 provides an effective yield of 11%.Patton Company uses the effective-interest method and holds these bonds for collection.
-On July 1, 2011, Patton Company should increase its Debt Investments account for the Scott Co.bonds by

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Patton Company purchased $400,000 of 10% bonds of Scott Co.on January 1, 2011, paying $376,100.The bonds mature January 1, 2021; interest is payable each July 1 and January 1.The discount of $23,900 provides an effective yield of 11%.Patton Company uses the effective-interest method and holds these bonds for collection.
-On July 1, 2011, Patton Company should increase its Debt Investments account for the Scott Co.bonds by

Use the Following Information for Questions