Anglin Corporation has excess cash to invest and pays $200,000 to buy 7%, five-year bonds of Richmond Corporation, at face value, on June 30, 2016
The bonds pay interest on June 30 and December 31. Anglin intends to hold the bonds to maturity. The bonds are disposed of, at face value, on June 30, 2021.
Prepare the journal entry for June 30, 2016 (omit the explanation).
What will be an ideal response
2016
June 30 Long-term Investments — Held-to-Maturity 200,000
Cash 200,000
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