Reference no: EM13515142
Seamark buys $300,000 of Eider's 8% five-year bonds payable at par value on September 1. Interest payments are made semiannually on March 1 and September 1.
The journal entry to accrue interest earned at year-end December 31 is:
a. Debit Interest Receivable $8,000, credit Interest Revenue $8,000.
b. Debit Interest Receivable $12,000, credit Interest Revenue $12,000.
c. Debit Cash $8,000, credit Interest Revenue $8,000.
d. Debit Cash $12,000, credit Interest Revenue $12,000.
e. Debit Interest Revenue $8,000, credit Interest Receivable $8,000.
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