Landmark buys $320,000 of SRW Company's 12%, 6-year bonds payable, at par value on July 1. Interest payments are made semiannually on December31 and June 30. The journal entry Landmark should make to record interest earned and received on December 31 is:Multiple ChoiceDebit Cash $16,000, credit Interest Revenue $16,000.Debit Cash $38,400, credit Interest Revenue $38,400.Debit Cash $19,200, credit Interest Revenue $19,200.Debit Interest Receivable $19,200, credit Interest Revenue $19,200.Debit Interest Revenue $19,200, credit Cash $19,200.

Each journal entry has its dual effect.A asset has debit balance and revenue has credit balance. And…

Landmark buys $320,000 of SRW Company's 12%, 6-year bonds payable, at par value on July 1. Interest payments are made semiannually on December 31 and June 30. The journal entry Landmark should make to record interest earned and received on December 31 is: Multiple Choice О Debit Cash $16,000, credit Interest Revenue $16,000. О Debit Cash $38,400, credit Interest Revenue $38,400. О Debit Cash $19,200, credit Interest Revenue $19,200.

Landmark buys $320,000 of SRW Company's 12%, 6-year bonds payable, at par value on July 1. Interest payments are made semiannually on December 31 and June 30. The journal entry Landmark should make to record interest earned and received on December 31 is: Multiple Choice О Debit Cash $16,000, credit Interest Revenue $16,000. О Debit Cash $38,400, credit Interest Revenue $38,400. О Debit Cash $19,200, credit Interest Revenue $19,200.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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