Five percent bonds with a total face value of $12,000 were purchased at par during the year. The last interest payment for the year was received on July 31 . The bonds pay interest semiannually. The adjusting entry at December 31 would include a
a. debit to interest revenue of $600.
b. debit to interest revenue of $250.
c. credit to interest revenue of $300.
d. credit to interest revenue of $250.
D
Business
You might also like to view...
Which of the following statements about consideration in an insurance contract is (are) true?
I. The insured's total consideration is submission of a completed application. II. The insurer's consideration is the promise to do those things specified in the policy. A) I only B) II only C) both I and II D) neither I nor II
Business
The popularity of defined benefit pension plans has:
A) increased B) decreased C) remained about the same D) become so low that these plans are no longer legal
Business