August 1, 2004, Bettis Company acquired face value, 10% Bonas Hanson Corporation at 104 plus accrued interest. The bonds were dated May 1, 2004, and mature on April 30, 2009, with interest payable each October 31 and April 30. The bonds are classified as subsequently measured at amortized cost. What entry should Bettis make to record the purchase of the bonds on August 1, 2004? A. Investment in bonds Interest Revenue Cash B. Investment in bonds Cash C. Investment in bonds Interest Revenue Cash 124,800 3,000 127,800 127,800 D. Held-to-Maturity Securities 120,000 Premium on Bonds 7,800 127,800 127,800 3,000 124,800

August 1, 2004, Bettis Company acquired face value, 10% Bonas Hanson Corporation at 104 plus accrued interest. The bonds were dated May 1, 2004, and mature on April 30, 2009, with interest payable each October 31 and April 30. The bonds are classified as subsequently measured at amortized cost. What entry should Bettis make to record the purchase of the bonds on August 1, 2004? A. Investment in bonds Interest Revenue Cash B. Investment in bonds Cash C. Investment in bonds Interest Revenue Cash 124,800 3,000 127,800 127,800 D. Held-to-Maturity Securities 120,000 Premium on Bonds 7,800 127,800 127,800 3,000 124,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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