On August 1, 2020, Peterson Corp

On August 1, 2020, Peterson Corp. acquired 20, $ 1,000, 8% bonds at 95 plus accrued interest. The bonds were dated May 1, 2020, and mature on April 30, 2020, with interest paid semi-annually on October 31 and April 30. The bonds will be held to maturity. Assuming the amortized cost model is used, the entry to record the purchase of the bonds on August 1, 2020 is a) Bond Investment at Amortized Cost.................9,500
Interest Income...........................................200
Cash............................................................................9,700

b)Bond Investment at Amortized Cost...........9,700
Cash...........................................................................9,700

c)Bond Investment at Amortized Cost.........9,500
Interest Receivable..............................................200
Cash...........................................................................9,700

d) Bond Investment at Amortized Cost...........10,000
Interest Income.....................................................200
Discount on Debt Securities..........................500
Cash ......................................................................9,700

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