A Company Issued $100,000 of 10% Bonds on January 1

Multiple Choice

A company issued $100,000 of 10% bonds on January 1. The bonds pay interest semiannually on January 1 and July 1. The company has a fiscal year end of May 31. On May 31, the company will:

A) make a journal entry to accrue interest expense from January 1 through July 1.
B) make a journal entry to accrue interest expense from January 1 through May 31.
C) make a journal entry to accrue interest expense from July 1 through December 31.
D) not need to make a journal entry on May 31.