Use the Following Information for Questions

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 receipt of the July 1 interest payment would include a

A) debit to Interest Expense for $875.
B) credit to Interest Income for $875.
C) credit to Interest Income for $1,750.
D) credit to Trading Investments for $875.

Correct Answer:

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