Answer:
The correct answer is A
Explanation:
The journal entry for on recording or posting the purchase of the bonds will be as follows:
March 1
Interest Receivable A/c...............................Dr $2,000
Cash A/c...................................................Cr $2,000
On March 1, the corporation bought bonds worth $200,000 and in addition to the accrued interest of $2,000. So, recording this will debit the interest receivable account against the cash account as the cash is going out of the business or corporation.
