Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Charleston Co. purchased 60, 6% APS Company bonds for $60,000 cash plus brokerag

ID: 2379870 • Letter: C

Question

Charleston Co. purchased 60, 6% APS Company bonds for $60,000 cash plus brokerage fees of $500. Interest is payable semiannually on July 1 and January 1. The entry to record the December 31 interest accrual would include a

Answer

debit to Interest Receivable for $1,800.

debit to Interest Revenue for $1,800.

credit to Interest Revenue for $3,600.

debit to Debt Investments for $1,800.

debit to Interest Receivable for $1,800.

debit to Interest Revenue for $1,800.

credit to Interest Revenue for $3,600.

debit to Debt Investments for $1,800.

Explanation / Answer

debit to Interest Revenue for $1,800