Business, 18.11.2020 05:30 alexisbaronetp85kek
A company issued 9%, 15-year bonds with a par value of $460,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is:
A-Debit Bond Interest Expense $410,000; credit Cash $410,000.
B-Debit Bond Interest Payable $30,667; credit Cash $30,667.
C-No entry is needed since no interest is paid until the bond is due.
D-Debit Bond Interest Expense $41,400; credit Cash $41,400.
E-Debit Bond Interest Expense $20,700; credit Cash $20,700.
Answers: 1
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A company issued 9%, 15-year bonds with a par value of $460,000 that pay interest semiannually. The...
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