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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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