On January 1 2017 Brenner Company purchased at face value a $1000 6% bond that pays interest on January 1. Brenner Company has a calendar year end. The entry for the receipt of interest on January 1 2017 is a.
$60\begin{array}{llr} \text { Cash} &60\\ \text { Interest Receivable } &&60\\\end{array}$

b.
$Receivable60\begin{array}{llr} \text {Cash } &60\\ \text { Interest Receivable} &&60\\\end{array}$

c.
$Cash60\begin{array}{llr} \text {Interest Receivable } &60\\ \text { Cash} &&60\\\end{array}$

d.
$60\begin{array}{llr} \text { Interest Receivable} &60\\ \text { Interest Revenue } &&60\\\end{array}$

Question

On January 1 2017 Brenner Company purchased at face value a $1000 6% bond that pays interest on January 1. Brenner Company has a calendar year end. The entry for the receipt of interest on January 1 2017 is a.  Cash 60  Interest Receivable  60 \begin{array}{llr}  	ext {  Cash}  & 60\ 	ext { Interest Receivable }  & & 60\\end{array}  Cash  Interest Receivable  ​ 60 ​ 60 ​ b. Cash  60  Interest Receivable 60 \begin{array}{llr}  	ext {Cash  }  & 60\ 	ext {  Interest Receivable}  & & 60\\end{array} Cash   Interest Receivable ​ 60 ​ 60 ​ c. Interest Receivable  60  Cash 60 \begin{array}{llr}  	ext {Interest Receivable  }  & 60\ 	ext {  Cash}  & & 60\\end{array} Interest Receivable   Cash ​ 60 ​ 60 ​ d.  Interest Receivable 60  Interest Revenue  60 \begin{array}{llr}  	ext {  Interest Receivable}  & 60\ 	ext {  Interest Revenue }  & & 60\\end{array}  Interest Receivable  Interest Revenue  ​ 60 ​ 60 ​

Lyndsey Spratt · Accepted Answer

Final Answer : A

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