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Jacks Corporation purchases $200,000 bonds plus accrued interest for 2 months of $2,000 from Kennedy Company on March 1. The bonds have an annual interest rate of 6% payable on June 30 and December 31. The entry to record the purchase of the bonds would include:

a. Interest Receivable debit $2,000.

b. Cash credit $200,000.

c. Interest Revenue credit $2,000.

d. Investment in Bonds debit $202,000.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M953066

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