QUESTION Solo Co. purchased $300,000 of bonds for $315,000. If Solo intends to hold the securities to maturity, the entry to record the investment includes
A. a debit to Held-to-Maturity Securities at $300,000.
B. a credit to Premium on Investments of $15,000.
C. a debit to Held-to-Maturity Securities at $315,000.
D. none of these.
Answer:C
QUESTION Solo Co. purchased $300,000 of bonds for $315,000. If Solo intends to hold the securities to maturity, the entry to record the investment includes
A. a debit to Held-to-Maturity Securities at $300,000. B. a credit to Premium on Investments of $15,000. C. a debit to Held-to-Maturity Securities at $315,000. D. none of these.