Lisle Corporation issued $200,000 of 10% bonds on January 1, 2017. The bonds pay interest semiannually on January 1 and July 1. The company has a fiscal year end of May 31. On May 31, 2017, the Lisle Corporation will:

Question

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Lisle Corporation needs to accrue interest expense from January 1 through May 31 because the interest for this period has been incurred but not yet paid, as the next interest payment is due on July 1.

Lisle Corporation Issued $200,000 of 10% Bonds on January 1