Landmark Corporation buys $450,000 of Schroeter Company's 6%, 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

Accepted Answer

Debit Cash $450,000; credit Debt Investments—Held-to-maturity (HTM) $450,000.

Answer

Debit Long-Term Investments—Held-to-maturity (HTM) $450,000; credit Cash $450,000.

Answer

Debit Cash $450,000; credit Interest Revenue $450,000.

Answer

Debit Cash $450,000; credit Interest Receivable $450,000.

Answer

Debit Cash $450,000; credit Bonds Payable $450,000.

Crowdly

Landmark Corporation buys $450,000 of Schroeter Company's 6%, 5-year bonds payab...

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