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Smith Company has issued a $60,000 face value, 10%, five-year bond at 95. What will be the journal entry at the maturity of the bond for the last semiannual interest payment if the company uses the straight-line method of amortization? O Interest Expense Gain on Bonds Payable Cash O Interest Expense Gain on Bonds Payable Cash O Interest Expense Cash Discount on Bonds Payable O Interest Expense Cash Discount on Bonds Payable 3000 3000 2700 300 3300 9000 6000 3000 3000 300 6000 3000

Smith Company has issued a $60,000 face value, 10%, five-year bond at 95. What will be the journal entry at the maturity of the bond for the last semiannual interest payment if the company uses the straight-line method of amortization? O Interest Expense Gain on Bonds Payable Cash O Interest Expense Gain on Bonds Payable Cash O Interest Expense Cash Discount on Bonds Payable O Interest Expense Cash Discount on Bonds Payable 3000 3000 2700 300 3300 9000 6000 3000 3000 300 6000 3000

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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Smith Company has issued a $60,000 face value, 10%, five-year bond at 95. What will be the journal entry at the maturity of the bond for the last semiannual interest payment if the company uses the straight-line method of amortization? Interest Expense Gain on Bonds Payable Cash Interest Expense Gain on Bonds Payable Cash Interest Expense Cash Discount on Bonds Payable Interest Expense Cash Discount on Bonds Payable 3000 3000 2700 300 3300 9000 6000 3000 3000 300 6000 3000
Transcribed Image Text:Smith Company has issued a $60,000 face value, 10%, five-year bond at 95. What will be the journal entry at the maturity of the bond for the last semiannual interest payment if the company uses the straight-line method of amortization? Interest Expense Gain on Bonds Payable Cash Interest Expense Gain on Bonds Payable Cash Interest Expense Cash Discount on Bonds Payable Interest Expense Cash Discount on Bonds Payable 3000 3000 2700 300 3300 9000 6000 3000 3000 300 6000 3000
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