On May 1, Pierce Company Purchased $60,000 of Stanton Company's

Multiple Choice

On May 1, Pierce Company purchased $60,000 of Stanton Company's 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its first semiannual interest. On February 1, Pierce sold $50,000 of the bonds at 103 plus accrued interest.
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-Alan Company purchased $400,000 of ABC Co. 5% bonds at 100 plus accrued interest of $4,500. Alan later sold $250,000 of bonds at 97. The journal entry for the purchase would include a

A) credit to Interest Receivable for $4,500
B) credit to Interest Revenue for $4,500
C) debit to Interest Receivable for $4,500
D) debit to Interest Revenue for $4,500