Use the Following Information for Questions

Multiple Choice

Use the following information for questions
On January 1, 2022, Warner Inc.purchased 3.5%, $50,000 face value Jackson Corp.bonds at face value.Interest is payable semi-annually on July 1 and January 1.The bonds are classified as trading investments.The bonds were sold on July 2, 2022 for $53,000.
-Warner's entry to record the sale on July 2, after the July 1 interest was received and recorded, would include a

A) debit to Cash for $53,875.
B) credit to Interest Income for $875.
C) credit to Realized Gain on Trading Investments for $3,000.
D) credit to Trading Investments for $53,000.