A bond issued on June 1, 2016, has interest payment dates of April 1 and October...
A bond issued on June 1, 2016, has interest payment dates of April 1 and October 1. The journal entry to record bond interest expense at December 31, 2016, is for a period of:
a.3 months
b.6 months
c.5 months
d.2 months
g.4 months
Homework Answers
Ans. Option A 3 months
Explanation: The interest on bonds is paid semi annually on April 1 and October 1.
On December 31 the interest (accrued) will be recorded for 3 months (1 October - 31 December) which would be paid on April 1.
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