Silcon Company issued P800,000 of 6%, 10-year bonds on one of its interest dates for P690,960 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. The journal entry on the first interest payment date, to record the payment of interest and amortization of discount will include a Group of answer choices credit to Cash for P55,277 debit to Bond Interest Expense for P48,000 credit to Discount on Bonds Payable for P7,277. debit to Bond Interest Expense for P64,000

Silcon Company issued P800,000 of 6%, 10-year bonds on one of its interest dates for P690,960 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. The journal entry on the first interest payment date, to record the payment of interest and amortization of discount will include a Group of answer choices credit to Cash for P55,277 debit to Bond Interest Expense for P48,000 credit to Discount on Bonds Payable for P7,277. debit to Bond Interest Expense for P64,000

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 15MCQ

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