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The journal entry to record this investment includes a debit

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The journal entry to record this investment includes a debit 1. Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2013 for $61,250. This includes a brokerage commission of $1,250. The journal entry to record this investment includes a debit to a. Debt Investments for $60,000. b. Debt Investments for $61,250. c. Cash for $61,250. d. Stock Investments for $60,000. 2. Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2013 for $61,250. This includes a brokerage commission of $1,250. Assume Community pays interest on January 1 and July 1, and the July 1 entry was made correctly. The journal entry at December 31, 2013 would include a credit to a. Interest Receivable for $3,000. b. Interest Revenue for $6,000. c. Accrued Expense for $6,000. d. Interest Revenue for $3,000. 3. Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2013 for $61,250. This includes a brokerage commission of $1,250. If Key sells all of its Community bonds for $62,500 and pays $1,500 in brokerage commissions, what gain or loss is recognized? a. Gain of $2,500 b. Loss of $250 c. Gain of $250 d. Gain of $1,250 4. Locke Co. purchased 50, 6% Johnston Company bonds for $50,000 cash plus brokerage fees of $500. Interest is payable semiannually on July 1 and January 1. The entry to record the July 1 semiannual interest payment would include a a. debit to Interest Receivable for $1,500. b. credit to Interest Revenue for $1,500. c. credit to Interest Revenue for $1,515. d. credit to Debt Investments for $1,515. 5. Locke Co. purchased 50, 6% Johnston Company bonds for $50,000 cash plus brokerage fees of $500. Interest is payable semiannually on July 1 and January 1. The entry to record the December 31 interest accrual would include a a. debit to Interest Receivable for $1,500. b. debit to Interest Revenue for $1,500. c. credit to Interest Revenue for $1,515. d. debit to Debt Investments for $1,500. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

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