Bonds are issued on June 1, 2018 that have interest payment dates of April 1 and October 1. Bond interest expense for the year ended December 31, 2018, is for a period of:
A) Three months.
B) Four months.
C) Six months.
D) Seven months.

Question

Quizplus · Accepted Answer

The interest expense is for the time the bonds were outstanding during the reporting period; seven months in this case.

Bonds Are Issued on June 1, 2018 That Have Interest