2. On January 1, a company issued and sold a $409,000, 6%, 10-year bond payable, and received proceeds of $404,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: A. Debit Bond Interest Expense $12,270; credit Cash $12,270 B. Debit Bond Interest Expense $24,540; credit Cash $24,540 C. Debit Bond Interest Expense $12,020; debit Discount on Bonds Payable $250; credit Cash $12,270 D. Debit Bond Interest Expense $12,270; debit Discount on Bonds Payable $250; credit Cash $12,520 E. Debit Bond Interest Expense $12,520; credit Cash $12,270; credit Discount on Bonds Payable $250
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![2. On January 1, a company issued and sold a $409,000, 6%, 10-year bond payable, and received
proceeds of $404,000. Interest is payable each June 30 and December 31. The company uses the
straight-line method to amortize the discount. The journal entry to record the first interest
payment is:
A. Debit Bond Interest Expense $12,270; credit Cash $12,270
B. Debit Bond Interest Expense $24,540; credit Cash $24,540
C. Debit Bond Interest Expense $12,020; debit Discount on Bonds Payable $250; credit Cash
$12,270
D. Debit Bond Interest Expense $12,270; debit Discount on Bonds Payable $250; credit Cash
$12,520
E. Debit Bond Interest Expense $12,520; credit Cash $12,270; credit Discount on Bonds Payable
$250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6035f1a2-2c03-490a-9469-88f7b64e730f%2F19a6690e-25bd-4d78-989a-488d1d3df61d%2Fey7ivjd_processed.png&w=3840&q=75)
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