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  3. world co. paid $45,000 to buy 10% fenridge power b

World Co. paid $45,000 to buy 10% Fenridge Power bonds payable. The bonds pay semi-annual...

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Accounting

World Co. paid $45,000 to buy 10% Fenridge Power bonds payable. The bonds pay semi-annual interest on June 30th and December 31st. World Co. paid $100 commission. World Co. intends to hold these bonds for 9 months and then trade them. The entry to record this purchase is
Multiple Choice
Short Term Investment - Fenridge Power 45,000
Commission fee expense 100
Cash 45,100
Short Term Investment - Fenridge Power 45,100
Cash 45,100
No entry
Cash 45,100
Short Term Investment - Fenridge Power 45,100
Short Term Investment - Fenridge Power 45,100
Cash 100
Commission fee expense 45,000

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