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 semlannual interest payment is: Multiple Choice Debit Bond Interest Expense $18,800; credit Cash $18,800. Debit Bond Interest Expense $37,600; credit Cash $37,60O. 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.

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 semlannual interest payment is: Multiple Choice Debit Bond Interest Expense $18,800; credit Cash $18,800. Debit Bond Interest Expense $37,600; credit Cash $37,60O. 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

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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