Lisle Corporation issued $200,000 of 10% bonds on January 1, 2017. The bonds pay interest semiannually on January 1 and July 1. The company has a fiscal year end of May 31. On May 31, 2017, the Lisle Corporation will:
A) make a journal entry to accrue interest expense from July 1 through December 31.
B) make a journal entry to accrue interest expense from January 1 through July 1
C) make a journal entry to accrue interest expense from January 1 through May 31.
D) make a journal entry to record cash interest paid on May 31.
C
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What will be an ideal response?
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Indicate whether the statement is true or false.