Martin’s bonds pay interest semiannually on July 1 and January 1. If its fiscal year ends on September 30, which statement is true of Martin’s year-end adjusting journal entry for bond interest?

a. Martin must record three months’ accrued interest expense and amortize three months’

discount or premium.

b. Martin will record nine months’ accrued interest expense and amortize three months’

discount or premium.

c. Martin will record nine months’ accrued interest expense and amortize nine months’

discount or premium.

d. Martin must record three months’ accrued interest expense only.

AppendixLO1