Vaughn Co. purchased 61, 7% Ivanhoe Company bonds for $61000 cash. Interest is payable annually on January 1. If 28 of thesecurities are sold on January 1 for $32700, the entry would include a credit to Gain on Sale of Debt Investments forO $4700O $1785.O $1635.O $1835.

The original purchase was for 61 bonds at $61,000, so each bond was purchased for $1,000 ($61,000 /…

Answered: Vaughn Co. purchased 61,7% Ivanhoe…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

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Vaughn Co. purchased 61,7% Ivanhoe Company bonds for $61000 cash. Interest is payable annually on January 1. If 28 of the securities are sold on January 1 for $32700, the entry would include a credit to Gain on Sale of Debt Investments for O $4700. O $1785. O $1635 O $1835.