Stock Investments 6,250 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