Use the Following Information for Questions

question 78

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 receipt of the July 1 interest payment would include a

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

---

Definitions:

Video Editing Software

Computer programs designed for editing, modifying, and producing video files, enabling users to create professional-quality videos.

Timeline

A graphical representation of a sequence of events in chronological order.

Separate Tracks

The process of dividing a musical recording into individual sections or songs, typically for the purpose of clearer organization or selective listening.

Animation Software

Computer programs designed to create moving graphics from visual files or by creating the graphics themselves.