Use the Following Information for Questions

question 1

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 sale on July 2, after the July 1 interest was received and recorded, would include a

• A)debit to Cash for $53,875.
• B)credit to Interest Income for $875.
• C)credit to Realized Gain on Trading Investments for $3,000.
• D)credit to Trading Investments for $53,000.

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Definitions:

Supplier Relationship

The interaction and management of connections between a company and the businesses that supply the materials or services it uses in its operations.

Verbal Understandings

Agreements or terms reached through spoken communication, which may not be formally documented in writing.

Existing Business

A company or enterprise that has been operational for some time, as opposed to a newly established entity.

Past Business Contracts

Previous agreements or legal obligations between parties in a business context.