landmark buys $300,000 of Schroeder Company’s Landmark buys S30 000 of Schroeter

Question

landmark buys $300,000 of Schroeder Company’s Landmark buys S30 000 of Schroeter Company s 8% f eyear bonds payable at par value on Sepan ber t Interest paymers are made se ennaly on March 1 and September LThe entry Landmark should record to accrue interest eamed at year end December 31 s re O Debit Interest Receivable $8,000, credit Interest Revenue $8.00o. O Debit Interest Receivable $12,000,credit interest Revenue $12.000 O Debit Cash $8.000, credit Interest Revenue $8,000 O Debit Cash $12,000, credt interest Revenue $12.000 O Debit Interest Revenue $8.000, credit interest Receivable $8,000

Explanation / Answer

Interest Will be = (300000*0.08/2) = $12000

So, Journal Entry would be

Debit Interest Receivable $12000 and Credit Interest Revenue of $12000

Option B is Correct

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