The Long-Term Debt section of Chesapeake's Balance Sheet at December 31, 2022 showed the following: Bonds Payable (7.5%, interest payable 6/30 and 12/31, $1,000,000 due 12/31/2031) Less: Unamortized Bond Discount Carrying Value The journal entry to record the interest payment on June 30, 2023, assuming a market interest rate of 9% would include: a Credit to Discount on Bonds Payable of $3,900 00000 a Credit to Premium on Bonds Payable of $3,900 a Debit to Cash $41,400 (80,000) $920,000 a Credit to Interest Expense of $41,400 a Debit to Interest Expense of $37,500

The Long-Term Debt section of Chesapeake's Balance Sheet at December 31, 2022 showed the following: Bonds Payable (7.5%, interest payable 6/30 and 12/31, $1,000,000 due 12/31/2031) Less: Unamortized Bond Discount Carrying Value The journal entry to record the interest payment on June 30, 2023, assuming a market interest rate of 9% would include: a Credit to Discount on Bonds Payable of $3,900 00000 a Credit to Premium on Bonds Payable of $3,900 a Debit to Cash $41,400 (80,000) $920,000 a Credit to Interest Expense of $41,400 a Debit to Interest Expense of $37,500

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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Please help solve (Balance Sheet).