Pima company acquires 50 10 percent five years 1000, Ask an Expert

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problem: Pima Company acquires 50, 10 percent, five years, $1,000 Community bonds on January 1, 2008 for 51,250 dollars. This includes a brokerage commission of $1,250. Suppose Community pays interest on January 1 & July 1, & the July 1 entry was done correctly. The journal entry at December 31, 2008 would include a credit to:

[A] Accrued Expense for $5,000.

[B] Interest Revenue for $2,500.

[C] Interest Receivable for $2,500.

[D] Interest Revenue for $5,000.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M917461

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