On January 1, Barone Company Purchased as a Short-Term Investment $\begin{array} { l } \text {Cash. } &1,100\\ \text {Debt Investments } &&1,100\\\end{array}$

On January 1, Barone Company purchased as a short-term investment a $1,000, 8% bond for $1,050.The bond pays interest on January 1 and July 1.The bond is sold on October 1 for $1,100 plus accrued interest.Interest has not been accrued since the last interest payment date.What is the entry to record the cash proceeds at the time the bond is sold?

A) $\begin{array} { l } \text {Cash. } &1,100\\ \text {Debt Investments } &&1,100\\\end{array}$

B) $\begin{array} { l }\text { Cash. } &1,120\\ \text {Debt Investments } &&1,050\\ \text { Gain on Sale of Debt Investments} &&50\\ \text {Interest Revenue } &&20\\\end{array}$

C) $\begin{array} { l }\text { Cash.} &1,120\\ \text {Debt Investments } &&1,100\\ \text {Interest Revenue } &20\\\end{array}$

D) $\begin{array} { l }\text { Cash } &1,100\\ \text {Debt Investments. } &&1,050\\ \text { Gain on Sale of Debt Investments} &&50\\\end{array}$