Kendall Corp

Multiple Choice

Kendall Corp.purchased at par value $75,000 of Shrem Company's 8% bonds that mature in three-years.The bonds pay interest semiannually on June 1 and December 1.Kendall plans to hold the bonds until they mature.When the bonds mature,Kendall should prepare the following journal entry:

A) debit Long-Term Investments-HTM,$75,000;credit Cash,$75,000.
B) debit Cash,$6,000;credit,Unrealized Gain-Equity,$6,000.
C) debit Cash,$75,000;credit Long-Term Investments-HTM,$75,000.
D) debit Unrealized Gain-Equity,$6,000;credit Cash,$6,000.
E) debit Cash,$75,000;credit Long-Term Investments-Trading,$75,000.