Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for

Question

Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. The journal entry to record this investment includes a debit to A. Debt Investments for $80,000. B. Debt Investments for $82,000. C. Cash for $82,000. D. Stock Investments for $80,000. Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. The journal entry to record this investment includes a debit to A. Debt Investments for $80,000. B. Debt Investments for $82,000. C. Cash for $82,000. D. Stock Investments for $80,000.

Explanation / Answer

Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. The journal entry to record this investment includes a debit to

B. Debt Investments for $82,000. .

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