Lisle Corporation Issued $200,000 of 10% Bonds on January 1

question 163

Multiple Choice

Lisle Corporation issued $200,000 of 10% bonds on January 1, 2017. The bonds pay interest semiannually on January 1 and July 1. The company has a fiscal year end of May 31. On May 31, 2017, the Lisle Corporation will:

• A)make a journal entry to accrue interest expense from July 1 through December 31.
• B)make a journal entry to accrue interest expense from January 1 through July 1
• C)make a journal entry to accrue interest expense from January 1 through May 31.
• D)make a journal entry to record cash interest paid on May 31.

---

Definitions:

Risk

The potential for losing something of value or the possibility of an unwanted outcome.

Insanity Defense

A legal defense in which a person charged with a criminal offense claims to be not guilty by reason of insanity at the time of the crime.

Criminal Commitment

A legal process by which people accused of a crime are instead judged mentally unstable and sent to a mental health facility for treatment.

Civil Commitment

A legal process through which an individual with severe mental illness can be court-ordered to receive treatment, typically when they pose a risk to themselves or others.