Solved

Bonds Are Issued for $10,000 at 8% on October 1

Question 93

Multiple Choice

Bonds are issued for $10,000 at 8% on October 1.What is the adjusting entry on December 31?

A) $\begin{array} { | c | c | } \hline \text { Bond Interest Expense } & 800 \\\hline \text { \quad\quad\quad\quad \quad\quad\quad\quad\quad Bond Interest Payable } & \quad\quad\quad\quad\quad\quad\quad\quad\quad800 \\\hline\end{array}$
B) $\begin{array} { | c | l | } \hline \text { Bond Interest Expense\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad } & 200 \\\hline \text { Bond Interest Payable } &\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad 200 \\\hline\end{array}$
C) $\begin{array} { | c | c | } \hline \text { Bond Interest Payable\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad } & 200 \\\hline \text { Bond Interest Expense } &\quad\quad\quad\quad\quad\quad\quad\quad\quad 200 \\\hline\end{array}$
D) $\begin{array} { | c | c | } \hline \text { Bond Interest Payable } & 800 \\\hline \text { Bond Interest Expense } & 800 \\\hline\end{array}$