On January 31, 2021, B Corp. issued $800,000 face value, 12% bonds for $800,000 cash. The bonds are dated December 31, 2020, and mature on December 31, 2030. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2021, balance sheet? Multiple Choice a. $24,000. b. $48,000. c. $72,000. d. $64,000.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
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On January 31, 2021, B Corp. issued $800,000 face value, 12% bonds for $800,000 cash. The bonds are dated December
31, 2020, and mature on December 31, 2030. Interest will be paid semiannually on June 30 and December 31.
What amount of accrued interest payable should B report in its September 30, 2021, balance sheet?
Multiple Choice
a. $24,000.
b. $48,000.
c. $72,000.
d. $64,000.
Transcribed Image Text:On January 31, 2021, B Corp. issued $800,000 face value, 12% bonds for $800,000 cash. The bonds are dated December 31, 2020, and mature on December 31, 2030. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2021, balance sheet? Multiple Choice a. $24,000. b. $48,000. c. $72,000. d. $64,000.
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