Use the Following Information for Questions

question 89

Multiple Choice

Use the following information for questions
On January 1, 2022, Warner Inc.purchased 3.5%, $50,000 face value Jackson Corp.bonds at face value.Interest is payable semi-annually on July 1 and January 1.The bonds are classified as trading investments.The bonds were sold on July 2, 2022 for $53,000.
-Warner's entry to record the receipt of the July 1 interest payment would include a

• A)debit to Interest Expense for $875.
• B)credit to Interest Income for $875.
• C)credit to Interest Income for $1,750.
• D)credit to Trading Investments for $875.

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Definitions:

Separation

The process of dividing, distinguishing, or disconnecting elements from one another.

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South African Apartheid

A policy or system of segregation or discrimination on grounds of race implemented in South Africa from 1948 until the early 1990s.

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