Leonard Technologies invests $54,000 to acquire $54,000 face value, 10%, five-ye

Question

Leonard Technologies invests $54,000 to acquire $54,000 face value, 10%, five-year corporate bonds on December 31, 2014 . The bonds will mature on December 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2018 OA. O B. a debit to Interest Revenue for $5,400 a credit to Interest Revenue for $2,700 C. O D. a debit to Interest Revenue for $2,700 a credit to Interest Revenue for $5,400

Explanation / Answer

Journal entry :

So answer is b) a credit to interest revenue for $2700

Date account and explanation debit credit Dec 31,2018 Cash (54000*10%*6/12) 2700 Interest revenue 2700

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.