Question 4: On February 1, 20X1, Vinmart purchased as a short-term investment five $1,000 VinHome Corp 20-year 6% bonds at 98 plus a brokerage fee of

$40. Bond interest is paid semiannually on February 1 and August 1. Which of the following journal entries correctly records this purchase on February 1, 20X1?

Question 5: On February 1, 20X1, as a short-term investment, the Phuong Dong Company purchased 20 Vinfast Corporation bonds having a face value of $1,000 each at 98 plus accrued interest. Interest on these 6% Vinfast Corporation bonds is paid semiannually on January 1 and July 1. Which of the following journal entries represents the correct recording of this transaction?

  • Attachment 1
  • Attachment 2

A. Short- Term Investments – Bonds$ 4 , 940Cash$ 4, 940B. Short- Term Investments – Bonds$ 4, 940Bond Interest Receivable150Cash$5, 090C. Short- Term Investments – Bonds$ 4 , 900Cash$ 4, 900D. Short- Term Investments – Bonds$ 4, 900Bond Interest Receivable150Cash$5 , 050