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The journal entry to record the first interest payment is (closest to)

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On January 1, a company issued and sold a $394,000, 9%, 10-year bond payable, and received proceeds of $389,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is (closest to);Debit Bond Interest Expense $35,460, credit Cash $35,460.;Debit Bond Interest Expense $17,730, credit Cash $17,730.;Debit Bond Interest Expense $17,480, debit Discount on Bonds Payable $250, credit Cash $17,730. (wrong choice);Debit Bond Interest Expense $17,730, debit Discount on Bonds Payable $250, credit Cash $17,980.;Debit Bond Interest Expense $17,980, credit Cash $17,730, credit Discount on Bonds Payable $250.

 

Paper#24115 | Written in 18-Jul-2015

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