Use the Following Information for Questions

question 42

Multiple Choice

Use the following information for questions.
On January 1, 2018, 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 held for trading investments. The bonds were sold on July 2, 2018 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 Revenue for $875.
• C) credit to Realized Gain on Held for Trading Investments for $3,000.
• D) credit to Held for Trading Investments for $53,000.

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Definitions:

Principle Parts

The essential components or sections of a mechanism or system that are critical to its functioning.

Atom

The smallest constituent unit of ordinary matter that constitutes a chemical element.

No Charge

A state or condition where an object does not have a net electrical charge, meaning it has an equal number of protons and electrons.

Neutron

One of the principal parts of an atom. The neutron has no charge and is part of the nucleus.