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On January 1, 2025, Sanja Accounting Services issued $130,000 of 2% bonds that mature in five years. They were issued at 104. The bonds pay semiannual interest payments on June 30 and December 31 of each year using the straight-line amortization method. What is the journal entry for the interest payment made on June 30, 2025? O Interest Expense Premium on Bonds Payable Cash O Interest Expense Cash O Cash Premium on Bonds Payable Interest Expense O Cash Interest Expense 780 520 1,300 1,300 1,300 1,300 1,300 520 780 1,300

On January 1, 2025, Sanja Accounting Services issued $130,000 of 2% bonds that mature in five years. They were issued at 104. The bonds pay semiannual interest payments on June 30 and December 31 of each year using the straight-line amortization method. What is the journal entry for the interest payment made on June 30, 2025? O Interest Expense Premium on Bonds Payable Cash O Interest Expense Cash O Cash Premium on Bonds Payable Interest Expense O Cash Interest Expense 780 520 1,300 1,300 1,300 1,300 1,300 520 780 1,300

FINANCIAL ACCOUNTING
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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On January 1, 2025, Sanja Accounting Services issued $130,000 of 2% bonds that mature in five years. They were issued at 104. The bonds pay semiannual interest payments on June 30 and December 31 of each year using the straight-line amortization method. What is the journal entry for the interest payment made on June 30, 2025? Interest Expense Premium on Bonds Payable Cash Interest Expense Cash Cash Premium on Bonds Payable Interest Expense Cash Interest Expense 780 520 1,300 1,300 1,300 1,300 1,300 520 780 1,300
Transcribed Image Text:On January 1, 2025, Sanja Accounting Services issued $130,000 of 2% bonds that mature in five years. They were issued at 104. The bonds pay semiannual interest payments on June 30 and December 31 of each year using the straight-line amortization method. What is the journal entry for the interest payment made on June 30, 2025? Interest Expense Premium on Bonds Payable Cash Interest Expense Cash Cash Premium on Bonds Payable Interest Expense Cash Interest Expense 780 520 1,300 1,300 1,300 1,300 1,300 520 780 1,300
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