On January 1, 2025, Taylor Accounting Services issued $53,000 of 6% bonds that mature in five years. They were issued at 99. 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 Cash O Interest Expense Discount on Bonds Payable Cash O Cash Interest Expense O Cash Discount on Bonds Payable Interest Expense 1,590 1,643 1,590 1,590 53 1,590 53 1,590 1,590 1,643
On January 1, 2025, Taylor Accounting Services issued $53,000 of 6% bonds that mature in five years. They were issued at 99. 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 Cash O Interest Expense Discount on Bonds Payable Cash O Cash Interest Expense O Cash Discount on Bonds Payable Interest Expense 1,590 1,643 1,590 1,590 53 1,590 53 1,590 1,590 1,643
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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21. Help me selecting the right answer. Thank you
Transcribed Image Text:On January 1, 2025, Taylor Accounting Services issued $53,000 of 6% bonds that mature in five years. They were issued at 99. 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?
- Option 1:
- Debit: Interest Expense 1,590
- Credit: Cash 1,590
- Option 2:
- Debit: Interest Expense 1,643
- Credit: Discount on Bonds Payable 53
- Credit: Cash 1,590
- Option 3:
- Debit: Cash 1,590
- Credit: Interest Expense 1,590
- Option 4:
- Debit: Cash 1,590
- Debit: Discount on Bonds Payable 53
- Credit: Interest Expense 1,643
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