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:

Quantitative Data

Numerical data that represent quantities or measurable amounts and enable mathematical operations and statistical analysis.

Bar Chart

A graphical display used to represent data with rectangular bars of lengths proportional to the values that they represent.

Qualitative Variable

A variable that categorizes or describes an attribute using qualitative properties (e.g., colors, names, labels).

Stem And Leaf Plot

A graphical representation used in descriptive statistics to display quantitative data where each data point is split into a "stem" and a "leaf."