Record the change in selling price

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A company $100 million of fixed interest rate bonds payable at $98 million. At year-end, the bonds were selling in the bond market at $97 million. What entry would Moore Company make at year-end to record the change in selling price?

A. Debit Bonds Payable $1 million, Credit Interest Expense $1 million

B. Debit Bonds Payable $3 million, Credit Interest Expense $3 million

C. Debit Investment in Bonds $1 million, Credit Interest Revenue $1 million

D. No entry is necessary

Reference no: EM13130997

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