Landmark Corporation buys $370,000 of Schroeter Company's 9%, 5-year bonds payable, at par value on September 1. Interest payments are made semiannually. Landmark plans to hold the bonds for the 5-year life. When the bonds mature, the journal entry to record the proceeds will be:

Question

Answer

Debit Long-Term Investments—Held-to-maturity (HTM) $370,000; credit Cash $370,000.

Answer

Debit Cash $370,000; credit Interest Revenue $370,000.

Answer

Debit Cash $370,000; credit Debt Investments—Held-to-maturity (HTM) $370,000.

Answer

Debit Cash $370,000; credit Interest Receivable $370,000.

Answer

Debit Cash $370,000; credit Bonds Payable $370,000.

Crowdly

Landmark Corporation buys $370,000 of Schroeter Company's 9%, 5-year bonds payab...

Want instant access to all verified answers on moodle.immaculata.edu?