Kendall Corp

question 107

Multiple Choice

Kendall Corp.purchased at par value,$75,000 of Shrem Company's 8% bonds that mature in three-years.The bonds pay interest semiannually on June 1 and December 1.Kendall plans to hold the bonds until they mature.When the bonds mature,Kendall should prepare the following journal entry (assume the semiannual interest was separately recorded) :

• A)debit Long-Term Investments-HTM,$75,000; credit Cash,$75,000.
• B)debit Cash,$6,000; credit,Unrealized Gain-Equity,$6,000.
• C)debit Cash,$75,000; credit Debt Investments-HTM,$75,000.
• D)debit Unrealized Gain-Equity,$6,000; credit Cash,$6,000.
• E)debit Cash,$75,000; credit Long-Term Investments-Trading,$75,000.

---

Definitions:

Role Confusion

A situation in which an individual is uncertain about the expectations of their societal or personal role, often in Erikson's theory of psychosocial development.

Adolescence

The developmental stage that begins at puberty and encompasses the period from the end of childhood to the beginning of adulthood.

Inferiority Complex

A psychological condition that arises from feelings of inadequacy, often leading to overcompensation in other areas.

Isolation

The state of being in a place or situation that is separate from others, which can lead to feelings of loneliness and can impact mental health.