B . do nothing special and ignore the fact that the accounting period does NOT coincide with the bond ‟ s interest period .
C . notify the issuer and request that a special payment be made for the appropriate portion of the interest period .
D . make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date .
21 ) Investments in debt securities are generally recorded at A . cost including brokerage and other fees . B . maturity value with a separate discount or premium account . C . maturity value . D . cost including accrued interest .
22 ) Under the equity method of accounting for investments , an investor recognizes its share of the earnings in the period in which the
A . investee pays a dividend . B . earnings are reported by the investee in its financial statements . C . investee declares a dividend . D . investor sells the investment .
23 ) Bista Corporation declares and distributes a cash dividend that is a result of current earnings . How will the receipt of those dividends affect the investment account of the investor under each of the following accounting methods ?
Fair Value Method | Equity Method A . No Effect | No Effect