Examen 4 D check Your work x G translate-Google Se central.edu/courses/1589313/q

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Examen 4 D check Your work x G translate-Google Se central.edu/courses/1589313/quizzes/3531665/take/questions/80180018 Question 8 4 pts "On May 1, Pierce Company purchased $60,000 of Stanton Company's 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its first semiannual interest. On February 1, Pierce sold $50,000 of the bonds at 103 plus accrued interest The journal entry Pierce will record on June 30 will includea O credit to Interest Revenue for $2,400 O credit to Cash for $2,400 O credit to Interest Receivable for $1.200 O debit to Cash for $3,600 s Previous Next No new data to save. Last checked at 2:28pm Submit Quiaz

Explanation / Answer

Correct answer is Debit to cash for $3,600 Interest Receivable = $ 2,400 Intereset Revenue* = $ 1,200 $ 3,600 * Interest Revenue : Interest Received (semiannually) = $ 3,600 ($60,000 X 12%) X 6/12 Less: Interest accrued = $ 2,400 Interest Revenue = $ 1,200

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