To record a bond investment made between interest payment dates, Investment in Bonds would be debited and Cash and Interest Revenue would be credited.

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When recording a bond investment made between interest payment dates, Investment in Bonds would be debited and Cash would be credited for the purchase price plus any accrued interest since the last interest payment date. However, instead of crediting Interest Revenue, the accrued interest paid is credited to Interest Receivable or is debited to Bond Interest Expense (depending on the context of the transaction and the investor's accounting policies), reflecting the fact that this interest will be received as part of the next interest payment.

To Record a Bond Investment Made Between Interest Payment Dates