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
A 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.
B 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.
C do nothing special and ignore the fact that the accounting period does NOT coincide with the bond's interest period.
D notify the issuer and request that a special payment be made for the appropriate portion of the interest period.
Acc/423 Acc423 Intermediate financial accounting iii final exam
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