Landmark Corp buys 420000 of Schroeter Companys 8 5year bond

Landmark Corp. buys $420,000 of Schroeter Company\'s 8%, 5-year bonds payable at par value on September 1, Interest payments are made semiannually. Landmark plans to hold the bonds for the 5-year life. When the bonds mature, the journal entry to record the proceeds will be: Multiple Choice Debit Long-Term Investments-HTM $420,000; credit Cash $420,000. Debit Cash $420,000; credit Interest Revenue $420,000 Debit Cash $420,000; credit Long-Term Investments-HTM $420,000. Debit Cash $420,000; credit Interest Receivable $420,000. Debit Cash $420,000; credit Bonds Payable $420,000.

Solution

Answer is C

General Journal	Debit	Credit
Cash	$420,000
Long-Term Investments-HTM		$420,000