On January 1,20X3,Dierk Company Issued $200,000 in Long-Term Bonds at Par.The

Short Answer

On January 1,20X3,Dierk Company issued $200,000 in long-term bonds at par.The bonds pay interest of 12% annually on January 1.The term of the bond is 10 years.What journal entry is necessary on December 31,20X3?
a. $\begin{array}{lcc}\text { Interest Expense } & 24,000 & \\\quad \text { Accrued Interest Payable } & & 24,000 \\\end{array}$
b. $\begin{array}{lcc}\text { Interest Expense } & 24,000 & \\\text { Cash } & & 24,000 \\\end{array}$
c. $\begin{array}{lcc}\text { Accrued Interest Receivable } & 24,000 & \\\text { Interest Revenue } & & 24,000\end{array}$
d. $\begin{array}{lrr}\text { Interest Expense } & 24,000 & \\\text { Accrued Interest Payable } & &20,000 \\\text { Bonds Payable } && 4,000\end{array}$
e. $\text { None of the above }$