Refer to Exhibit 14-7.Which of the following would be included in the interest accrual entry?

A) credit to Interest Payable for $3, 333
B) debit to Bond Interest Expense for $3, 549
C) credit to Discount on Bonds Payable for $4, 259
D) debit to Premium on Bonds Payable for $451

The interest accrual entry would include a debit to Bond Interest Expense which represents the interest expense incurred during the period. Option A is incorrect because it suggests a credit to Interest Payable which would only be recorded if interest was not previously paid or accrues. Option C is incorrect because it suggests a credit to Discount on Bonds Payable which would only be recorded if there was a discount on the bonds at issuance. Option D is incorrect because it suggests a debit to Premium on Bonds Payable which would only be recorded if there was a premium on the bonds at issuance.