A company insued 4%, 15year bonds with a par valut of 5300 000 that pay interest annually Thie market rate on the date of insuance was 8%. The jourmal entry to recoed each annual interest payment is: O Debit Bond eterest Expense 512.000, creat Cash S12.000 O Debt Bond Interett Payate 2.000, credt Cash 2.000 O No entry is needed since no terest is paid unti the bond is due O Debt Bond leterest Epense 36000 cret Cash 5000
A company insued 4%, 15year bonds with a par valut of 5300 000 that pay interest annually Thie market rate on the date of insuance was 8%. The jourmal entry to recoed each annual interest payment is: O Debit Bond eterest Expense 512.000, creat Cash S12.000 O Debt Bond Interett Payate 2.000, credt Cash 2.000 O No entry is needed since no terest is paid unti the bond is due O Debt Bond leterest Epense 36000 cret Cash 5000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter22: Corporations: Bonds
Section: Chapter Questions
Problem 3MC
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