[G3]

I’ll admit the bonds section of the FAR exam has always been a problem for me. So, when I was going over the Notes I got confused when it came to the journal entry for issuance between interest dates.

On the one page the entry said the accrued interest was credited to “Interest Payable” but the next page it was a credit to “Interet Expense” specifically mentioning that we credit the expense.

I checked my other review material but it just showed “Interest Expense (Interest Payable)” as part of the entry

I am confused; is it a credit to Payable or Expense?

Any help would be greatly appreciated 🙂

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[jeff]

No – no special rules that you need to worry about for your exam.

The key nugget was the credit to Interest Expense – that's it.

[G3]

Thanks Jeff 🙂

Back to sneaky studying during work

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[G3]

Thanks Jeff 🙂

Back to sneaky studying during work

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[Author]

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