Ascertain the amount of interest revenue accrued at December 31.
Answer to Problem 1MCQ
d. The amount of interest revenue accrued at December 31 is $625.
Explanation of Solution
Working note:
Debt investment:
Debt investments refer to the investments made in debt instrument by the investor at a predetermined interest and maturity period. Examples of debt investments are corporate bonds, government bonds, certificate of deposits.
Ascertain the amount of interest revenue accrued at December 31 as follows:
From the above Calculation it is clear that option (a), (b), (c) and (e) are incorrect, only option (d) is correct.
Hence the correct option is option c.
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Chapter 15 Solutions
Principles of Financial Accounting.
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