Answered: Journal entry to record the second…

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Journal entry to record the second period of interest, June 30, Matrix would record a credit to investment revenue:

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

Section: Chapter Questions

Problem 1MC

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Question

On January 1, 2019, Matrix, Inc. purchased as an investment OMR 22,000, of 9%, 8-year bonds, interest paid semi-annually. The market rate for similar bonds is 11%, so Matrix paid OMR 20,000.

Journal entry to record the second period of interest, June 30, Matrix would record a credit to investment revenue:

Select one:

A. 2,200

B. 1,100

C. 990

D. 1980

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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