On 10/1/X1, Openshaw, Inc issued $1,000,000 of bonds at a price of 98. Assuming the bonds have a 3-year term and bear interest at an annual stated rate of 6% payable semi-annually.What is the 12/31/X1 adjusting journal entry to record interest (using the straight-line method)?a. Interest Expense $66,667 Interest Payable 60,000 Bond Premium 6,667b. Interest Expense $16,667 Interest Payable 15,000 Bond Discount 1,667c. Interest Expense $66,667 Interest Payable 60,000 Bond Discount 6,667d. Interest Expense $16,667 Interest Payable 15,000 Bond Premium 1,667Options: - ○ d - ○ b - ○ a - ○ c

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On 10/1/X1, Openshaw, Inc issued $1,000,000 of bonds at a price of 98. Assuming the bonds have a 3-year term and bear interest at an annual stated rate of 6% payable semi-annually. What is the 12/31/X1 adjusting journal entry to record interest (using the straight line method?) а. Interest Expense $66,667 Interest Payable 60,000 Bond Premium 6,667 b. Interest Expense $16,667 Interest Payable 15,000 Bond Discount 1,667 С. Interest Expense $66,667 Interest Payable 60,000 Bond Discount 6,667 d. Interest Expense $16,667 Interest Payable 15,000 Bond Premium 1,667

On 10/1/X1, Openshaw, Inc issued $1,000,000 of bonds at a price of 98. Assuming the bonds have a 3-year term and bear interest at an annual stated rate of 6% payable semi-annually. What is the 12/31/X1 adjusting journal entry to record interest (using the straight line method?) а. Interest Expense $66,667 Interest Payable 60,000 Bond Premium 6,667 b. Interest Expense $16,667 Interest Payable 15,000 Bond Discount 1,667 С. Interest Expense $66,667 Interest Payable 60,000 Bond Discount 6,667 d. Interest Expense $16,667 Interest Payable 15,000 Bond Premium 1,667

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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