nd July 1. Prepare the entry to record the payment of interest on July 1, 2021
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest...
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![On January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value). Assume that interest is payable
semiannually on January 1 and July 1. Prepare the entry to record the payment of interest on July 1, 2021
Select one:
O a.
Interest Expense
5,400
Cash
5,400
O b.
Interest Payable
10,800
Interest Expenses
10,800
O c.
Interest Payable
5,400
Interest Expenses
5,400
O d.
Interest Expense
10,800
Cash
10,800
Cirill lis ais!](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c613458-9935-43d0-a761-bda5d63122cd%2F943090bc-d07b-4026-b9e0-8a1bb07f854d%2Fd9op8qi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value). Assume that interest is payable
semiannually on January 1 and July 1. Prepare the entry to record the payment of interest on July 1, 2021
Select one:
O a.
Interest Expense
5,400
Cash
5,400
O b.
Interest Payable
10,800
Interest Expenses
10,800
O c.
Interest Payable
5,400
Interest Expenses
5,400
O d.
Interest Expense
10,800
Cash
10,800
Cirill lis ais!
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