If bonds are issued between interest dates, the entry on the books of the issuing corporation could include a
A) debit to Interest Payable.
B) credit to Interest Receivable.
C) credit to Interest Expense.
D) credit to Unearned Interest.

Question

Quizplus · Accepted Answer

When bonds are issued between interest dates, the issuer collects accrued interest from the buyer, which is recorded as a credit to Interest Expense.

If Bonds Are Issued Between Interest Dates, the Entry on the Books