On January 1, 2018, Ailey Company purchased a $30,000, 8% bond, at face value. Interest...
70.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2018, Ailey Company purchased a $30,000, 8% bond, at face value. Interest is paid annually each January 1. The entry related to this investment on December 31, 2018, would include a
a. Debit to Interest Revenue for $2,400
b. Credit to Interest Expense for $2,400
c. Credit to Cash for $2,400
d. Debit to Interest Receivable for $2,400
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
