When a Company Issues Bonds Between Interest Dates, the Entry

question 98

Multiple Choice

When a company issues bonds between interest dates, the entry to record the issuance of the bonds will:

• A) Include a credit to interest payable.
• B) Include a debit to interest expense.
• C) Include a debit to cash that has been reduced by interest accrued from the last interest date.
• D) Include a debit to cash that has been increased by interest that will accrue from sale to the next interest date.

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