Amount of accrued interest on the date of sale


RCM Corporation, a calendar-year firm, is authorized to issue $200,000 of 10 percent, 20-year bonds dated January 1, 2011, with interest payable on January 1 and July 1 of each year.

If the bonds were issued on April 1, 2011, the amount of accrued interest on the date of sale is :

A) $20,000.

B) $10,000.

C) $5,000.

D) $2,500.

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Accounting Basics: Amount of accrued interest on the date of sale
Reference No:- TGS089880

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