When a bond is purchased for an investment, the purchase price, minus the brokerage commission, plus any accrued interest is recorded.

Question

Quizplus · Accepted Answer

The purchase price of a bond for investment is recorded at its cost, which includes the purchase price plus any brokerage commission, but does not include accrued interest. Accrued interest is recorded separately as interest receivable.

When a Bond Is Purchased for an Investment, the Purchase