Question

Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2012 for $61,250. This includes a brokerage commission of $1,250. The journal entry to record this investment includes a debit to

Answer 1

Answer: Debt investment for $61250

Explanation:

Since we are given the information that Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2012 for $61,250, the journal entry to record this investment will be:

Dr Debt investment $61250

Cr Cash $61250

Therefore, the journal entry to record this investment includes a debit to Debt investment for $61250