Roger Technologies invests $50,000 to acquire $50,000 face value,8%,five-year corporate bonds on January 2,2017.The bonds will mature on January 2,2022.The bonds pay interest semiannually on January 2 and July 2 each year until maturity.When Roger Technologies receives interest payments,how is the accounting equation affected?

Question

Quizplus · Accepted Answer

When Roger Technologies receives interest payments, it records interest income, which increases equity through retained earnings.

Roger Technologies Invests $50,000 to Acquire $50,000 Face Value,8%,five-Year Corporate