When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must

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When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, an adjusting entry should be made to record the interest that has accrued since the last interest receipt date. This entry would involve debiting Interest Receivable and crediting Interest Revenue for the amount of interest accrued. This ensures that the investor recognizes the interest revenue in the appropriate accounting period. Option B is not necessary as the investor can make an adjusting entry on their own instead of requesting a special payment. Option C is incorrect because recording the total interest to be received at the next interest receipt date would result in overstating revenue in the current accounting period. Option D is incorrect because the investor needs to account for the interest earned during the period in question.

When an Investor's Accounting Period Ends on a Date That