#51When 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:amake an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date.bmake 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.cnotify the issuer and request that a special payment be made for the appropriate portion of the interest period.ddo nothing special and ignore the fact that the accounting period does not coincide with the bond's interest period.

Solution: 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 "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". Hence option "a" is correct.

Answered: hen an investor's accounting period…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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#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 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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