Corporate Bonds

. The Reba Company purchased 10%, $800,000 bonds of the Trading Up Company at par plus accrued interest on April 1, 2014, as an investment in trading securities. The bonds pay interest on June 30 and December 31 each year. The entry by Reba on April 1, 2014, would include a

a. debit to Investment in Trading Securities of $820,000

b. credit to Cash of $820,000

c. credit to Interest Income of $20,000

d. debit to Interest Expense of $20,000