Accurate Numbers, Inc., issued $100,000 of 10 year, 12% bonds dated April 1, 20A, for $102,360 on April 1, 20A. The bonds pay interest on April 1 and October 1. Straight-line amortization is used by the company. What entry is needed at October 1 for the first interest payment?

A) Choice A
B) Choice B
C) Choice C
D) Choice D

Question

Accurate Numbers, Inc., issued $100,000 of 10 year, 12% bonds dated April 1, 20A, for $102,360 on April 1, 20A. The bonds pay interest on April 1 and October 1. Straight-line amortization is used by the company. What entry is needed at October 1 for the first interest payment?

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D

Quizplus · Accepted Answer

The Answer of Accurate Numbers, Inc., issued $100,000 of 10 year, 12% bonds dated April 1, 20A, for $102,360 on April 1, 20A. The bonds pay interest on April 1 and October 1. Straight-line amortization is used by the company. What entry is needed at October 1 for the first interest payment?

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D