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Matthew Company Purchases Held-To-Maturity Bonds for $12,000 Cash

Question 81

Multiple Choice

Matthew Company purchases held-to-maturity bonds for $12,000 cash.The journal entry to record this transaction will include a:


A) debit to the Held-to Maturity Investment in Bonds account and a credit to Cash.
B) debit to Cash and a credit to the Held-to Maturity Investment in Bonds account.
C) debit to the Long-term Investment account and a credit to Cash.
D) debit to the Unrealized Loss on Held-to Maturity Investment in Bonds account and a credit to Cash.

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