Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Akkar Co. invested in the bonds of Sanad Co. on 1/1/16. Akkar intends to hold the bonds until maturity. These 5- year bonds had a

image text in transcribed

Akkar Co. invested in the bonds of Sanad Co. on 1/1/16. Akkar intends to hold the bonds until maturity. These 5- year bonds had a face value of $300.000, pay 5% interest on 6/30 and 12/31 of each year, and were issued when the market rate of interest was 6%, resulting in a cost of $287.205. Which of the following is the correct journal entry to record the receipt of the interest payment on 6/30/16? O a. Debit- Interest Receivable 15.000: Debt Investment- HTM 2.232 || Credit- Interest Revenue 17,232 O b. Debit- Interest Receivable 7,500: Debt Investment- HTM 1,116 11 Credit- Interest Revenue 8,616. O c. Debit-Cash 15,000: Debt Investment- HTM 2.232 || Credit- Interest Revenue 17232. O d. Debit- Cash 7.500: Debt Investment- HTM 1,116 11 Credit- Interest Revenue 8,616

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Advances In Behavioral Research

Authors: Lawrence A. Ponemon, David R.L. Gabhart

1st Edition

ISBN: 0387976191, 978-0387976198

More Books

Students also viewed these Accounting questions