On January 1 2017 Brenner Company purchased at face value a $1000 10% bond that pays interest on January 1. Brenner Company has a calendar year end. The entry for the receipt of interest on January 1 2018 is a.
$110\begin{array}{llr} \text { Cash } &110\\ \text { Interest Revenue } &&110\\\end{array}$

b.
$100\begin{array}{llr} \text { Cash } &100\\ \text { Interest Revenue } &&100\\\end{array}$

c.
$40\begin{array}{llr} \text { Cash } &40\\ \text { Interest Revenue } &&40\\\end{array}$

d.
$Receivable100\begin{array}{llr} \text { Cash } &100\\ \text { Interest Receivable} &&100\\\end{array}$

Question

On January 1 2017 Brenner Company purchased at face value a $1000 10% bond that pays interest on January 1. Brenner Company has a calendar year end. The entry for the receipt of interest on January 1 2018 is a.

110\begin{array}{llr} \text { Cash } &110\\ \text { Interest Revenue } &&110\\\end{array}

b.

100\begin{array}{llr} \text { Cash } &100\\ \text { Interest Revenue } &&100\\\end{array}

c.

40\begin{array}{llr} \text { Cash } &40\\ \text { Interest Revenue } &&40\\\end{array}

d.

Receivable100\begin{array}{llr} \text { Cash } &100\\ \text { Interest Receivable} &&100\\\end{array}

Gursimran Singh · Accepted Answer

Final Answer : D

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