A Company Paid $37,800 Plus a Broker's Fee of $525

Multiple Choice

A company paid $37,800 plus a broker's fee of $525 to acquire 8% bonds with a $40,000 maturity value as a long-term investment.The company intends to hold the bonds to maturity.The correct entry to record the purchase of the bond investment is:

A) Debit Debt Investments−HTM $37,800; credit Cash $37,800.
B) Debit Debt Investments−HTM $38,325; credit Cash $38,325.
C) Debit Cash $40,000; credit Debt Investments−HTM $40,000.
D) Debit Debt Investments−HTM $37,800; debit Investment Expense $525; credit Cash $38,325
E) Debit Debt Investments−HTM $37,800; debit Loss on Investment $525; credit Cash $38,325.