Five Percent Bonds with a Total Face Value of $12,000

question 64

Multiple Choice

Five percent bonds with a total face value of $12,000 were purchased at par during the year.The last interest payment for the year was received on July 31.The bonds pay interest semiannually.The adjusting entry at December 31 would include a

• A) debit to interest revenue of $600.
• B) debit to interest revenue of $250.
• C) credit to interest revenue of $300.
• D) credit to interest revenue of $250.

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Definitions:

Home Page

The main screen or dashboard of software or a website, providing access to various sections and tools.

Enter Bills Window

In accounting software, a specific feature or interface where bills or invoices received from vendors are entered.

Journal Entry

A record of a financial transaction within the double-entry bookkeeping system, containing debits and credits.

Debits Expense

An accounting entry that represents an increase in expenses, which in turn reduces equity or net income.