If a trading investment in bonds is sold one month after its value was adjusted at year end, the investment account is
A)debited for the carrying amount of the bonds at the sale date.
B)credited for the cost of the bonds at the sale date.
C)credited for the carrying amount of the bonds at the sale date.
D)debited for the cost of the bonds at the sale date.

Question

Quizplus · Accepted Answer

When a trading investment in bonds is sold, the investment account is credited for the carrying amount of the bonds at the sale date. This reflects the removal of the asset from the company's books at its current value.

If a Trading Investment in Bonds Is Sold One Month