A company issued 8%, 15-year bonds with a par value of $470,000 that pay Interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $18,s00, credit Cash $18,800. Debit Bond Interest Expense $37,600; credit Cash $37,600. Debit Bond interest Payable $31,333; credit Cash $31,333. Debit Bond Interest Expense $420,000: credit Cash $420,000. No entry is needed, since no interest is paid until the bond is due.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A company issued 8%, 15-year bonds with a par value of $470,000 that pay Interest semiannually. The market rate on the date of issuance was 8%. The
journal entry to record each semiannual interest payment is:
Multiple Choice
58:17
Debit Bond Interest Expense S18,800; credit Cash $18,800.
Debit Bond Interest Expense $37,600; credit Cash $37,600.
Debit Bond Interest Payable $31,333; credit Cesh $31,333.
Debit Bond Interest Expense $420,000; credit Cash $420,000.
due.
No entry
needed, since no interest is paid until the bond
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Transcribed Image Text:A company issued 8%, 15-year bonds with a par value of $470,000 that pay Interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice 58:17 Debit Bond Interest Expense S18,800; credit Cash $18,800. Debit Bond Interest Expense $37,600; credit Cash $37,600. Debit Bond Interest Payable $31,333; credit Cesh $31,333. Debit Bond Interest Expense $420,000; credit Cash $420,000. due. No entry needed, since no interest is paid until the bond < Prev 7 of 10 Next >
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