On April 1, 2014, a company purchased a $20,000, 7.2 percent bond; interest is payable annually each September 31. The bond is accounted for using the cost method and was purchased for $20,800 including accrued interest. The accounting period ends December 31. Give the adjusting entry at the end of 2014.

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The Answer of On April 1, 2014, a company purchased a $20,000, 7.2 percent bond; interest is payable annually each September 31. The bond is accounted for using the cost method and was purchased for $20,800 including accrued interest. The accounting period ends December 31. Give the adjusting entry at the end of 2014.

On April 1, 2014, a Company Purchased a $20,000, 7