When the interest payment dates are March 1 and September 1, and notes are issued on July 1, the amount of interest expense to be accrued at December 31 of the year of issue would:
A) Not be required.
B) Be for six months.
C) Be for four months.
D) Be for 10 months.

Question

Quizplus · Accepted Answer

Since the notes were issued on July 1, the interest payment date of September 1 has already passed. Therefore, only four months of interest expense (July, August, October, November) needs to be accrued at December 31.

When the Interest Payment Dates Are March 1 and September