The Ripkin Company purchased 10%, $400,000 bonds of the Batter Up Company at par plus accrued interest on April 1, 2018, as an investment in available-for-sale securities. The bonds pay interest on June 30 and December 31 each year. The entry by the Ripkin Company on April 1, 2018, would include a a. debit to Investment in Available-for-Sale Securities of $410,000 b. debit to Interest Expense of $10,000 c. credit to Interest Revenue of $10,000 d. credit to Cash of $410,000
The Ripkin Company purchased 10%, $400,000 bonds of the Batter Up Company at par plus accrued interest on April 1, 2018, as an investment in available-for-sale securities. The bonds pay interest on June 30 and December 31 each year. The entry by the Ripkin Company on April 1, 2018, would include a a. debit to Investment in Available-for-Sale Securities of $410,000 b. debit to Interest Expense of $10,000 c. credit to Interest Revenue of $10,000 d. credit to Cash of $410,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7. The Ripkin Company purchased 10%, $400,000 bonds of the Batter Up Company at par plus accrued interest on April 1, 2018, as an investment in available-for-sale securities. The bonds pay interest on June 30 and December 31 each year. The entry by the Ripkin Company on April 1, 2018, would include a
a. debit to Investment in Available-for-Sale Securities of $410,000
b. debit to Interest Expense of $10,000
c. credit to Interest Revenue of $10,000
d. credit to Cash of $410,000
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