Vaughn Co. purchased 61, 7% Ivanhoe Company bonds for $61000 cash. Interest is payable annually on January 1. If 28 of thesecurities are sold on January 1 for $32700, the entry would include a credit to Gain on Sale of Debt Investments forO $4700O $1785.O $1635.O $1835.

The original purchase was for 61 bonds at $61,000, so each bond was purchased for $1,000 ($61,000 /…

Answered: Vaughn Co. purchased 61,7% Ivanhoe…

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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Vaughn Co. purchased 61,7% Ivanhoe Company bonds for $61000 cash. Interest is payable annually on January 1. If 28 of the securities are sold on January 1 for $32700, the entry would include a credit to Gain on Sale of Debt Investments for O $4700. O $1785. O $1635 O $1835.