Landmark Corp. buys $420,000 of Schroeter Company\'s 8%, 5-year bonds payable at

Question

Landmark Corp. buys $420,000 of Schroeter Company's 8%, 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: Multiple Choice Debit Long-Term Investments-HTM $420,000; credit Cash $420,000. Debit Cash $420,000; credit Interest Revenue $420,000 Debit Cash $420,000; credit Long-Term Investments-HTM $420,000. Debit Cash $420,000; credit Interest Receivable $420,000. Debit Cash $420,000; credit Bonds Payable $420,000.

Explanation / Answer

Answer is C

General Journal Debit Credit Cash $420,000 Long-Term Investments-HTM $420,000

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