Stock Investments 10,000 Cash 10,000 Cash 10,000 Stock Investments 10,000 Cash 6,250 Loss on Sale of Stock Investments 3,750 Stock Investments 10,000 2- Multiple Choice Question 45
On January 1, Talent Company purchased as a short-term investment a $ 1,000, 8 % bond for $ 1,050. The bond pays interest on January 1 and July 1. The bond is sold on October 1 for $ 1,200 plus accrued interest. Interest has not been accrued since the last interest payment date. What is the entry to record the cash proceeds at the time the bond is sold?
Cash 1,200 Debt Investments 1,200 Cash 1,220 Debt Investments 1,050 Gain on Sale of Debt Investments 150 Interest Revenue 20 Cash 1,220