On April 1, 2012, Fiedler purchased $10,000 of Hun Corporation Bonds at 96 plus accrued interest. The bonds pay interest of 10 percent semiannually on March 1 and September 1. To record this acquisition, Fiedler should debit Investments in Held-to-Maturity Securities - Hun's Bonds for

Question

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The bonds were purchased at 96% of the face value, so $10,000 x 0.96 = $9,600 should be debited to Investments in Held-to-Maturity Securities.

On April 1, 2012, Fiedler Purchased $10,000 of Hun Corporation