When a Company Issues Bonds Between Interest Dates, the Entry

Multiple Choice

When a company issues bonds between interest dates, the entry to record the issuance of the bonds will:

A) Include a credit to interest payable.
B) Include a debit to interest expense.
C) Include a debit to cash that has been reduced by interest accrued from the last interest date.
D) Include a debit to cash that has been increased by interest that will accrue from sale to the next interest date.