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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 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 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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