D is corrent. The bonds payable ($100,000) pay interest semiannually on June 30 and December 31. At 9/30/Y2 the last interest date was 6/30/Y2 (3 months earlier). Therefore, Wall should report 3 months accrued interest, or $2,500 ($100,000 × 10% × 3/12 = $2,500) in its 9/30/Y2 balance sheet.
A is incorrect. The bonds payable ($100,000) pay interest semiannually on June 30 and December 31. At 9/30/Y2 the last interest date was 6/30/Y2 (3 months earlier). Therefore, Wall should report 3 months accrued interest, or $2,500 ($100,000 × 10% × 3/12 = $2,500) in its 9/30/Y2 balance sheet.
A is incorrect. The bonds payable ($100,000) pay interest semiannually on June 30 and December 31. At 9/30/Y2 the last interest date was 6/30/Y2 (3 months earlier). Therefore, Wall should report 3 months accrued interest, or $2,500 ($100,000 × 10% × 3/12 = $2,500) in its 9/30/Y2 balance sheet.
A is incorrect. The bonds payable ($100,000) pay interest semiannually on June 30 and December 31. At 9/30/Y2 the last interest date was 6/30/Y2 (3 months earlier). Therefore, Wall should report 3 months accrued interest, or $2,500 ($100,000 × 10% × 3/12 = $2,500) in its 9/30/Y2 balance sheet.
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