This Question: 1 pt 8 of 21 (0 complete) ? | This Quiz: 25 pts possibl On Januar

Question

This Question: 1 pt 8 of 21 (0 complete) ? | This Quiz: 25 pts possibl On January 1, 2017, Dodge Company purchases $120,000, 7% bonds at a price of 84.4 and a maturity date of January 1, 2027, Dodge Company intends to hold the bonds until their maturity date Interest is paid semiannually, on January 1 and July 1. Dodge Company has a calendar year end. The entry to record the purchase of the bond investment on January 1, 2017, is: OA. debit Held-to-Maturity Investment in Bonds for $120,000 and credit Cash for $120,000. O B. debit Cash for $120,000 and credit Bonds Payable for $120,000. O C. debit Held-to-Maturity Investment in Bonds for S101,280 and credit Cash for $101,280 ? D. debit Cash for $101,280 and credit Investment in Bonds for $101,280

Explanation / Answer

Option C. is correct answer.

Date Account Titles Debit Credit January 1, 2017 Held-to-Maturity Investment in Bonds $101,280 Cash ($120,000 x 84.4%) $101,280

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