hen an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must Question 51 options: a make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date. b make an adjusting entry to debit Interest
hen an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must Question 51 options: a make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date. b make an adjusting entry to debit Interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
#51
When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must
Question 51 options:
a
|
make an
|
b
|
make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the total amount of interest to be received at the next interest receipt date.
|
c
|
notify the issuer and request that a special payment be made for the appropriate portion of the interest period.
|
d
|
do nothing special and ignore the fact that the accounting period does not coincide with the bond's interest period.
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