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
Debt Investments 1,200
Interest Revenue 20
Cash 1,200
Debt Investments 1,050