On January 1, Vega Company purchased as an investment a $1,000, 6% bond for $1,000. The bond pays Interest on January 1. The bond is sold on July 1 for $1,100 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 1,130 Debt Investments 1,100 Interest Revenue 30 Cash 1,100 Debt Investmonts 1,100 Cash 1,130 + Debt Investments 1,000 Gain on Sale of Debt Investments 100 Interest Revenue 30 Cash 1,130 Debt Investments 1,000 Interest Revenue 130

On January 1, Vega Company purchased as an investment a $1,000, 6% bond for $1,000. The bond pays Interest on January 1. The bond is sold on July 1 for $1,100 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 1,130 Debt Investments 1,100 Interest Revenue 30 Cash 1,100 Debt Investmonts 1,100 Cash 1,130 + Debt Investments 1,000 Gain on Sale of Debt Investments 100 Interest Revenue 30 Cash 1,130 Debt Investments 1,000 Interest Revenue 130

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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