On May 1, 2010, Stanton Company purchased $200,000 of Harris Company's 12% bonds at 100 plus accrued interest of $8,000. On June 30, 2010, Stanton received its first semiannual interest. On February 1, 2011, Stanton sold $160,000 of the bonds at 103 plus accrued interest. The journal entry Stanton will record on February 1, 2011, will include:
a. a credit to Gain on Sale of Investments for $4,800.
b. a credit to Interest Revenue for $4,800.
c. a debit to Cash for $164,800.
d. a credit to Interest Receivable for $2,000.
a. a credit to Gain on Sale of Investments for $4,800.
b. a credit to Interest Revenue for $4,800.
c. a debit to Cash for $164,800.
d. a credit to Interest Receivable for $2,000.