On January 1 Hamm Company purchased as an investment a $1000 6% bond for $1050. The bond pays interest on January 1. What is the entry to record the interest accrual on December 31? a.
$\begin{array}{llr}
\text { Interest Receivable } &60\
\text { Interest Revenue } &&60\
\end{array}$

b.
$\begin{array}{llr}
\text {Debt Investments } &60\
\text { Interest Revenue } &&60\
\end{array}$

c.
$\begin{array}{llr}
\text { Interest Receivable} &63\
\text { Interest Revenue} &&63\
\end{array}$

d.
$\begin{array}{llr}
\text { Debt Investments } &63\
\text { Interest Revenue } &&63\
\end{array}$

Question

On January 1 Hamm Company purchased as an investment a $1000 6% bond for $1050. The bond pays interest on January 1. What is the entry to record the interest accrual on December 31? a. 
$\begin{array}{llr}
  \text { Interest Receivable } &60\
 \text { Interest Revenue  } &&60\
\end{array}$

b.
$\begin{array}{llr}
  \text {Debt Investments   } &60\
 \text { Interest Revenue  } &&60\
\end{array}$

c. 
$\begin{array}{llr}
  \text {  Interest Receivable} &63\
 \text {   Interest Revenue} &&63\
\end{array}$

d. 
$\begin{array}{llr}
  \text { Debt Investments  } &63\
 \text {  Interest Revenue } &&63\
\end{array}$

Quizplus · Accepted Answer

The Answer of On January 1 Hamm Company purchased as an investment a $1000 6% bond for $1050. The bond pays interest on January 1. What is the entry to record the interest accrual on December 31? a. 
$\begin{array}{llr}
  \text { Interest Receivable } &60\
 \text { Interest Revenue  } &&60\
\end{array}$

b.
$\begin{array}{llr}
  \text {Debt Investments   } &60\
 \text { Interest Revenue  } &&60\
\end{array}$

c. 
$\begin{array}{llr}
  \text {  Interest Receivable} &63\
 \text {   Interest Revenue} &&63\
\end{array}$

d. 
$\begin{array}{llr}
  \text { Debt Investments  } &63\
 \text {  Interest Revenue } &&63\
\end{array}$

On January 1 Hamm Company Purchased as an Investment a $1000